Global Economic Turmoil, Vietnamese Garment Manufacturers Strive To Survive

　　 Vietnam? Domestic clothing and textile Manufacturers strive to survive in the global economic turmoil, industry experts say.

Tran Dang Chuc, general manager of Vietnam's Tian Nan garment and textile company, said that in the past few weeks, their company had not exported any products. There are 18000 workers in Tian Nan clothing and textile company. They receive only a few orders per month. In order to reduce losses, the company adjusted the price of products, taking into account changes in interest rates and raw material costs.

In addition, Ruan an, general manager of Xigong clothing company, said that their traditional partners in Europe obviously cut imports.

Ruan said that the export orders for the entire clothing and textile sector dropped by 30%. Small companies are facing closure because they have no competitive advantage compared with large companies. Large companies benefit from off shore shipments and pay freight and handling costs through FOB, purchasers or sales tax.

In order to survive, Xigong clothing companies are constantly looking for new markets, increasing productivity and adopting FOB price when exporting.

Ruan said that their company's orders continued until September. In the past four months, Xigong clothing company exported 300 billion Vietnamese shield products, with a net profit of 20 billion Vietnamese Dong (952 thousand US dollars), and completed 30% of the annual target.

In the second quarter of this year, Xigong clothing company set up an office in Hongkong to buy raw materials and open retail outlets in the United States.

The chairman of Vietnam's Jianhu clothing and textile company said that their company was under the pressure of strong price cutting, and the company also took measures to reduce production costs.

This year, Vietnam's clothing and textile industry set an export target of US $15 billion, an increase of 12% over 2011. In the first 5 months of this year, Vietnam's exports amounted to US $5 billion 300 million, an increase of 7.7% over the same period last year.

In addition, imports and imports of raw materials have declined. Imports of cotton fell by 33.7% and imports fell by 2.3%. Imports of fiber fell by 29.3% and imports increased by 0.2%.