Fabric shortfall puts brakes on Vietnam’s garment export

A shortage of available fabric has seen profit from Vietnam’s garment export not reaching its full potential, despite the industry’s sharp growth overall, analysts say.

With an annual growth rate of 30 percent, the garment industry has overtaken oil and gas to take top spot for the country’s exported goods.

According to the Ministry of Trade and Industry, export turnover in the garment industry for the first nine months of 2007 accounted for US$ 5.8 billion but the cost of importing material to produce goods, stood at $ 4.9 billion as the industry is still heavily reliant on outsourcing.

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