Vietnam's textile and garment industry exports are facing recession crisis

According to the Ministry of Commerce and Industry of Vietnam, although textile and garment exports from Vietnam reached US$ 10.3 billion in the first three quarters of 2011 (compared with a year-on-year increase of 28% in the same period in 2010), due to the recession of the major export markets of the United States and the European Union, there was a fear of impact. The growth of Vietnam's textile and garment industry.

According to the forecast of the Vietnam Textile Association, the U.S. and EU’s orders for textile garments in Vietnam are expected to decrease by 10% by the end of this year. VuDucGiang, the Vietnam Textile and Apparel Association, said that the United States is the largest export market for textile products in Vietnam and is currently due to the US market. The economy is bad, and the export of textile products in Vietnam is in danger of a recession.

In addition, the recent economic recession in EU countries has also affected the export of textiles from Vietnam.

In addition, due to the importation of raw materials for the textile industry in Vietnam, and the increase in the minimum basic salary from October 1 this year, employee salaries accounted for 65% of the production costs of the textile and garment industry, resulting in a substantial increase in production costs. The industry has caused greater pressure.

At present, the worst affected by the coat is in the textile export items. Its orders have dropped by 30%, and exports to the EU are also expected to decline by 10 to 15%.

In order to strengthen the export of textile products, Vietnam Merchants has actively expanded its export market to Japan, South Korea, Asean and Canada. In spite of this, according to the Vietnam Textile and Apparel Association’s Ministry of Commerce, Vietnam’s textile and garment export target value for this year is set at US$13.5 billion, with an estimated growth rate of 10%.