Apparel firms worried about high rises in material import prices

Although much apparel export contracts were signed earlier, the producers still are very worried as import prices of production materials are increasing.

Apparel export of Vietnam in May was kept at fairly high growth, earning nearly $800 million that brought total figure of Jan-May to approximately $4 billion.

The lot of signed export deals could create conditions for the industry to reach the full year’s export turnover target of $10.5 billion but apparel companies continue worrying about profit plan because import prices of materials are increasing dramatically.

Upward trend of the material import prices is considered to be “the nightmare” of the textile and garment businesses whose 80-95 percent production relies on material import.

According to statistics provided by Ministry of Industry and Trade, the global price of cotton saw the record increase in the last five months with 40 percent. The fact made enterprises be afraid of profitability.

To ensure the export growth at 17-18 percent in this year and deliver shipments on time under signed contracts, the demand for apparel materials also must post a corresponding increase, which clarified the rapidly increased import of the industry in Jan-May.

In the period, the import of cotton, cloth, fibre and materials (including leather shoes) surpassed $4 billion.

Factually, the apparel industry develops based on a round production chain from producing cotton, fibre, textile, dye, cloth and then garment. In this chain, Vietnam now only can well do the last phase.
Apparel companies proposed, foremost Vietnam should invest and develop the domestic material supply source.

Dautu

Tags: Vietnam Apparel, Vietnam Apparel Exports