Apparel stands in front of big challenges

Apparel stands in front of big challenges

Over a decade of strong development, 2017 is considered as the year that the garment exporters face the pressure.

According to the Vietnam Textile and Apparel Association, 2017 is not an easy year for Vietnamese garment exporters because of the fluctuations in the world market.
Facing a year is not easy forecast, the province's garment enterprises have prepared for the response.
* Multidimensional fluctuations
According to the Vietnam Textile and Garment Association, with the changes of the world today, the garment export in 2017 not much bright spots compared with 2016.
Last year, the textile and garment export target set at the beginning of the year was 31 billion USD, then adjusted to 29 billion USD but still can not complete and only reached 28.3 billion USD, up nearly 5% compared with 2015. Export growth rate of the textile and garment industry is also at the lowest level in 10 years.
In 2017, the textile and garment sector is aiming for export growth of 8.8% with the export turnover of USD 31 billion set at the beginning of 2016.
Nguyen Huu Tri, Chairman of the Board of Directors, Director of Tan Mai Wood Joint Stock Company, said: "At the end of 2016, when attending the conference on textile and garment industry, Vietnam Textile and Garment Association This year's price will continue to be difficult for the previous year. "
It is also clear that the current garment exporters are facing many fluctuations in the market, the exchange rate against the US dollar, the competition between Vietnam and China, the order moved to Burma, Bangladesh, Cambodia, etc., are also burdened with a number of other costs, such as social insurance, health insurance, and freight.
According to Tri, the garment export enterprises, if calculated well, will maintain the growth rate, but the profit will be difficult to achieve high.
* Take advantage
Information from the garment exporters in the province, whether orders are flowing to the Cambodian or Banglasesh cause competition pressure, but so far most manufacturers still actively source the goods.
Mr. Bui The Kich, General Director of Dong Nai Garment Corporation (Donagamex), said that the enterprise has signed production contracts until the end of June 2017, the source of goods for production is quite good. This year, Donagamex still set the export growth rate of 10% compared to 2016.
Nguyen Van Hoang, deputy general director of Dong Tien Joint Stock Company, said that the company has signed contracts until the end of the third quarter.
According to Hoang, over the years, Dong Tien Joint Stock Company has diversified its products and diversified market. Specifically, markets in Europe accounted for 65%, Japan 25%, the US and other markets 10%.
The year 2016 is quite difficult, but the revenue of Dong Tien Joint Stock Company still stands at VND1,400 billion. This year, the company built a growth rate of 5-10% compared to 2016.
Hoang, in the context of competitive pressure today, businesses will have to calculate to overcome, namely to exploit the best of their own.
According to Huang, China has the advantage of being close to the raw materials, so fast delivery, however, labor costs are high; In countries such as Cambodia, Myanmar and Bangladesh, labor costs are low, but the skills of garment workers are low so it is difficult to compete in medium and high-end segments.
"In my opinion, we have to thoroughly promote the advantages to win, with competitive pressure, businesses will have to improve capacity, improve production to survive," Hoang said.