Vietnamese Textile & Clothing Exporters Seek Govt Assistance
The Vietnamese textile and garment export sector which has been witnessing a declining trend since the beginning of this year is seeking assistance from the government to navigate the challenges.
“Textile and garment exports started slowing down in the final months of 2022, and there haven’t been any signs of improvement,” Le Tien Truong, Chairman of VINATEX said.
“The shortage of orders is a common phenomenon. But Vietnam’s rivals like Bangladesh, India, and Turkey have recorded contrary results,” Truong added.
He pointed out that the market share of Vietnamese textile and clothing is dropping in its key exports markets like the EU, US and South Korea.
Truong attributed the reduction in market share to the buyers in these countries shifting their orders to countries with geographical advantages.
“However, the main reason for the weak competitiveness of Vietnamese textile and apparel exporters is because of the multiple challenges that these exporters face,” he stated.
He listed interest rates, logistics costs, rising salaries and many trade barriers as the several challenges that the industry is facing.
He further added that the country now does not have the advantage of cheap labour and firms are finding it difficult to invest in modernisation, which could help them reduce costs and increase competitiveness.
