Low input prices encourage local companies Business

Low input prices encourage local companies

The sharp decrease in prices of several kinds of raw materials has encouraged domestic companies to expand production activities, according to Thoi Bao Kinh Te Sai Gon (Saigon Economics Times).

Firms try to cut reliance on imports

Increasing the localisation rate would be one measure that could reduce enterprises' reliance on imported raw materials, according to independent market watchdogs.

Analysts said that such reliance, including the high rate of materials sourced from the Chinese market, was affecting the economy.

According to the Vietnam Garment and Textile Association (VGTA), in 2013 the domestic apparel industry used 7.4 billion square metres of fabric, of which up to six billion square metres were imported.