Textile firms uncertain about next year’s export orders
By Tran Thu - The Saigon Times Daily
HCMC – Whilst preparing to deliver their products in early 2012, local garment and textile exporters have expressed concern about orders for the whole of next year.
Chairman Le Quang Hung of Saigon Garment Manufacturing Trade Joint-Stock Company (Garmex Saigon), said several partners had committed to import the firm’s products but had yet to decide on specific orders.
In the short term, the company will have a stable amount of orders for delivery until March and April next year, but are unsure of the rest of the year, Hung said.
Hung said a situation that was likely to repeat in 2012 was that customers, though having promised to purchase goods, still bargained before coming to any specific decision. Therefore, to ensure revenue, Garmex Saigon is seeking orders from Japan, instead of maintaining the focus on the European market.
Meanwhile, Ngo Trung Kien, general director of Saigon 2 Garment Company, said September and October this year saw a decline in the number of orders which the firm had secured to export to the U.S. and European markets. However, the situation is getting stable and the garment company is preparing products for delivery in January.
Other garment and textile enterprises also had orders for export in early 2012. Overall, the orders from Japan and the U.S. would be stable and probably surge in volume, while those from Europe would dwindle.
According to Pham Tuan Kien, director of Tan Chau Garment Export Co. Ltd., a member of the Vietnam Textile and Apparel Association, the amount of textile products was now limited, leading to a tough price competition, especially with the easy orders.
Even when customers made more orders, the situation for the entire year might not prosper, he predicted.
According to the Ministry of Industry and Trade, several private and foreign-invested companies manufacturing shirts and trousers have witnessed their contracts cancelled and have no new orders for the first quarter next year.
In addition, the spending restriction in Japan and the debt crisis in Europe have greatly impacted Vietnamese exports.
General Department of Customs figures show revenue from textile and garment exports reached US$12.78 billion in January-November, a rise of 27.5% year-on-year. The U.S. accounted for half of the total, while the European Union market held 17%, Japan 11% and South Korea 6%.