Vietnam Textile and Apparel Association (VITAS) has urged the Government to direct provinces with suitable infrastructures to build some large garment and textile parks with an area from 500 hectare to 1,000 hectare and centralized wastewater treatment systems to attract investors into the phases of weaving and dyeing; strengthen cooperation and linkages among enterprises producing raw materials and accessories and sewing ones to establish regional chains.

As per SGG News, Vietnamese garment exporters have received many orders, especially from the U.S. market in the fourth quarter of this year. In the last few months of this year, Fly High Garment Co. has received many orders that are enough to last until the third quarter of next year. However, raw materials have increased by about 20 percent forcing the company to recalculate processing unit prices with partners.

 

Many other enterprises also reflected that not only have materials in the garment industry been scarce, and have the prices of raw materials increased but some symbiotic sectors, such as packaging, adhesive tapes, and chemicals, have also risen by 15-20 percent, causing production costs to climb, leading to lower profits. Revenues of some enterprises are even just enough to cover expenses and labor costs.

 

Up to now, Vietnam has signed free trade agreements (FTAs) with many countries around the world so it can use raw materials from the members of these FTAs. However, Vietnamese enterprises have mainly used raw materials imported from China for a long time. When orders increase again, they become passive in organizing production because they did not have a timely forecast to prepare raw materials.

 

To limit the negative impacts on production and business, from the outbreak of the COVID-19 pandemic, VITAS recommended and requested member enterprises to discuss with customers and focus on exploiting domestic raw materials and auxiliary materials, or from other countries to replace raw materials imported from China to maintain production and business.

Source: fashionatingworld.com