“Leaving China” global brands and retailers visit Bangladesh

Delegation members purchased ready-made garments worth around US$ 5.8bn annually.

Nov 12, 2012. A group of buyers representing some 20 global brands and retailers is this week visiting Bangladesh as part of a wider regional tour to explore sourcing alternatives to China.

The delegation from Hong Kong will also take in Burma (officially known as Myanmar), Cambodia, Indonesia and Vietnam.

Richard Vuylsteke, leader of the delegation and president of American Chamber of Commerce in Hong Kong, said the executives are looking to diversify their sourcing, especially as China is shifting from basic garments to other high-tech industries and faces rising labour costs.

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Major textile and apparel FDI halted operations after one shipment

Most Modern Garment And Textile Line In Vietnam Put Into Operation, Mar 29, 2012

The LuxFashion project of Lifepro Vietnam Joint-Venture Company, including 11 close-circuit garment complexes, at a cost of more than US$ 300 million, has been operational in Ninh Binh Province. This project is the most modern and largest textile-dying-industrial garment line in Vietnam. Mass-produced fashion clothes, jeans, sporting wears, technical and special clothing, such as protective clothing for fire-fighters, are Lifepro Vietnam’s main products.

At present, the company has been franchised by GF Industry SpA for six fashionable trademarks and received many contracts, worth tens of millions of Euros, from various companies, such as Blue Jeans Gas, Carrera, Miss Sixty, IT Holding, Hydrogen, PJ RR Moda, Vitamina Jeans, Lifegate SRL, Punto Jeans.

Also, the company has signed a contract, worth over US$ 137 million, with Globe Manufacturing Company LLC to supply protective clothing for American fire-fighters.

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Apparel makers urged to work harder to achieve 2012 $ 18 billion export target

The garment industry is being urged to work harder to achieve its US$ 18 billion export target this year.

The textile industry has called on its members to work harder to achieve its US$ 18 billion dollar export target this year.
This was announced yesterday by the secretary of the Viet Nam Textile and Apparel Association (Vitas), Le Tien Truong, who is also deputy CEO of the Viet Nam National Textile and Garment Group (Vinatex).

The call came after garment export turnover reached only about $10 billion in the first nine months of the year as demands of major markets declined.

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Apparel firms lower export outlook

HCM CITY — A plunge in export growth and declining orders have led the Viet Nam Textile and Apparel Association to scale down its export-value target from US$19 billion to US$17-17.5 billion.

Domestic exporters said the weak global economy and sinking textile and garment consumption were the reasons behind the move.

Figures from the Ministry of Industry and Trade showed that the sector’s export value increased 14.7 per cent year-on-year in the first four months of 2012, hitting $4.4 billion.

However, in the first five months, growth fell to 7.7 per cent, reaching $5.3 billion, and in the first seven months, the sector’s export growth was at 8.8 per cent, much lower than the country’s general year-on-year export growth of 19 per cent.

Although exports of textiles, garments and fibres increased 7.5 per cent year on-year to $9.2 billion for the first seven months, the figure was much lower compared to the 30-per-cent increase over the same seven-month period last year.

Only big textile and garment exporters have orders for the third quarter of this year, while many small – and medium-sized enterprises have to cut production because of a shortage of orders.

Consumption demands in the EU have fallen strongly in the past months and export orders have decreased by 20-30 per cent compared to the same period last year.

Le Tien Truong, VITAS deputy chairman, said the apparel industry accounts for 15-16 per cent of the country’s total exports, and employs 2.5 million workers.

WTO membership enabled many garment companies to find new markets as well as enjoy priorities such as the most favoured nation status, he said. It had also brought many foreign investors into the Vietnamese garment industry, he said. In 2007 alone the industry attracted 150 projects with a total investment of $690 million. In 2007-12 there have been 485 FDI projects worth more than $2 billion.

But there have also been many challenges.

The association said the global recession was having a severe impact on the industry, with prices and orders declining significantly.

Truong said the industry’s long-time advantage of cheap human resources has also mostly evaporated.

The industry is under severe pressure and faces a risk of losing even the domestic market, he warned.

Read more …

Garment firms lower outlook, Vietnam News, Aug 15, 2012

WTO boosts garment trade, Vietnam News, Aug 20, 2012


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