Want to be in the loop?
subscribe to
our notification
Business News
APPAREL EXPORTS DOWN, LEATHER FOOTWEAR SHIPMENTS UP
While the country saw a year-on-year decline of 20% in textile and garment export orders in the January-November period, the shipment of leather footwear edged up 8%-10% during the 11-month period.
Although the revenue from apparel exports over the period amounted to an estimated US$29.9 billion, up 7.8% year-on-year, the number of orders shipped to foreign countries tumbled, equal to 80% of the figure seen in the same period last year, according to a report by the Ministry of Industry and Trade.
In the past, at the end of the fourth quarter, local apparel exporters received many orders for the following year, but this year, the number of orders was modest.
Several firms have yet to secure long-term export orders and have received only a few short-term orders.
Besides this, local apparel firms are facing harsh competition with some large rivals from China, India and Bangladesh.
The fall in the number of orders also resulted from the rising movement of orders to African countries emerging in the sector, piling pressure on Vietnam’s apparel industry.
Apart from this, China tends to place its orders in countries that offer preferential tariffs, such as Bangladesh and Cambodia, instead of Vietnam.
The Ministry of Industry and Trade suggested local apparel firms proactively seek orders to ensure their production during the weeks leading up to the end of the year. Aside from enhancing their connection with customers to form a close production chain, the apparel firms must follow regulations on labeling and origin to attract more orders in the coming days.
Unlike the apparel sector, which is facing a slowdown due to the decline in orders, Vietnam’s leather and footwear exports are on the rise, with multiple positive signs for the rest of the year.
The footwear sector has successfully expanded its importing markets, while maintaining its stable growth in some major markets, including Europe, the United States, Japan and South Korea.
In the January-November period, most local footwear firms saw the number of orders rise by 10% year-on-year. Stable prices of materials contributed to the hike.
The United States’ recent removal of preferential policies for footwear exports from China and India has created opportunities for Vietnamese footwear exporters.
China is continuing to reduce its focus on the leather-footwear industry and boost high-tech industries instead, so orders of footwear and handbags will be transferred from China to Vietnam.
Vietnam earned US$16.5 billion from footwear exports over the 11-month period, a year-on-year rise of 12.5%. Leather and footwear production in 2019 is expected to pick up by 10% against last year.
Source: The Saigon Times
Related News
DIGITAL TRANSFORMATION IN LOGISTICS – A KEY TO UNLOCKING SUSTAINABLE E-COMMERCE AND ECONOMIC DEVELOPMENT
Accelerating digital transformation in logistics is critical in order to promote the sustainable development of e-commerce, a conference on applying technology held by the Ministry of Industry and Trade heard on Thursday, as well as accelerating overall economic growth.
SOILBUILD EXTENDS ITS HORIZONS INTO VIETNAM INDUSTRIAL REAL ESTATE
Soilbuild Group, an integrated real estate group, has broadened its investment in industrial real estate to Vietnam through its Soilbuild International division. The official launch of Soilbuild International (Vietnam) took place in Hanoi on May 9th, 2024, and was attended by esteemed guests, including domestic and international partners.
SEMINAR: BUSINESS SPOTLIGHT - THE HONG KONG-INSPIRED PRESENCE NESTLED IN THE HEART OF HANOI'S EAST
16h00 - 18h00, Wednesday (May 22nd, 2024)Almaz Convention Center - Hanoi (GG map: https://maps.app.goo.gl/YtWyGgkiTwWvFnfX6)
VIETNAM SECURES REMARKABLE ECONOMIC SUCCESSES SINCE NATIONAL REUNIFICATION
Since the national reunification on April 30, 1975, Vietnam has obtained admirable economic achievements and is now on its way to become the 20th largest economy in the world. Back to 1975, Vietnam, torn by two major wars, was a backward economy dependent on agriculture and foreign assistance. Foreign loans and aid accounted for over 63 percent of its budget.
350 EXHIBITORS TO TAKE PART IN HCM CITY PAPER, COATINGS, RUBBER, PLASTIC EXPOS
They will have a total display area of 10,000sq.m, 30 per cent more than last year, and the participation of over 350 local and international exhibitors who will showcase thousands of products and technologies.
INT’L INVESTORS EYE VIETNAM’S DATA CENTER MARKET – REPORT
Vietnam’s data center market is increasingly attractive to foreign investors, driven by the country’s expanding digital economy, rising data consumption, and supportive government policies, said a new report by JLL. While Vietnam’s data center sector has traditionally been dominated by local telecommunications companies, global players are now entering the market.