APPAREL ORDERS FROM IMPORTERS PLUNGE 30%: VITAS

Many local textile and garment firms saw orders from importers falling by 30% in the first half of the year, said Truong Van Cam, general secretary of the Vietnam Textile and Apparel Association (VITAS).

At a press briefing on July 19, Cam said low numbers of orders were reported by many firms, even large ones, which is contrary to experts’ earlier predictions.

Many experts had forecast that the United States-China trade war would help shift orders from China to Vietnam. In addition, Vietnam has participated in multiple new-generation free trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which are highly expected to help boost local exports.

“I am also astonished at the situation,” Cam said.

Explaining the situation, Cam said apparel importers may place orders in other countries with better contract terms while the hoped-for benefits from free trade agreements with Vietnam remain unclear.

According to VISTA’s statistics, Vietnam exported US$17.97 billion of apparel products in the first six months of the year, up 8.61% over the same period last year, including US$14.02 billion in garment products.

The United States remained Vietnam’s largest apparel buyer, with US$7.22 billion in the January-June period, up 12.86% year-on-year and accounting for nearly half of the country’s total apparel exports. The CPTPP members came in second, with US$2.57 billion, followed by the European Union with US$2.05 billion.

Cam said local textile and garment enterprises must put more efforts into reaching an export target of US$40 billion this year.

Source: The Saigon Times