Illustrative image. (Photo: VNA)Hanoi (VNA) – The Ministry of Industry and Trade is drafting legal amendments to help domestic garment producers cut costs and reduce administration burdens amid many difficulties facing the industry this year.
According to the Ministry of Industry and Trade, the global demand for textiles and garments fell in the first eight months of 2017. Wages for workers and logistics costs have been rising, putting local garment exporters under pressure, particularly in the face of fierce competition from regional rivals like Bangladesh, Myanmar and Cambodia.
Garment makers from these countries have greatly benefited from their governments’ preferential policies that included tax cuts and currency devaluation to boost exports. They have also enjoyed favourable treatment from the US and the European Union (EU).
According to Chairman of the Vietnam Textile and Apparel Association Vu Duc Giang, the sector aims to export about 30 billion USD worth of textiles and garments in 2017. The US is expected to be the biggest buyer, accounting for 50 percent of exports, followed by the EU (20.5 percent), Japan (19.5 percent), and the Republic of Korea (7.5 percent).
Though the country’s exports rose by 9.9 percent in the first eight months of this year to 19.8 billion USD, the ministry worries the export target may not be met as there will not be many big orders for the remaining months.
The ministry asked domestic producers to join foreign supermarket chains in Vietnam and attend overseas product promotion and business-matching events.
It also asked state agencies to support domestic textiles and garment exporters in administrative procedures to help them overcome obstacles.-VNA
VNA
