Vietnam - Garment exports to EU drop sharply

The Hanoitimes -  The volume of Vietnam’s garment and textile exports to the European Union (EU) market saw a year-on-year reduction of 30 percent during the January to mid-March period, said the Vietnam Textile and Garment Association (Vitas).

Vietnam’s garment exports to the EU market have fallen by 25-35 percent since the beginning of 2012, according to the Vietnam Textiles Association.

This is primarily attributed to the EU debt crisis that has forced consumers to tighten their belts. EU importers are currently shifting their orders from Vietnam to Cambodia, Laos and Bangladesh to avoid paying the 10 percent import tax as Vietnam is no longer enjoys the Most Favoured Nation tariff of zero percent.

In addition, Vietnam’s small- and medium-sized enterprises still find it difficult to meet the corporate social responsibility standards set by EU importers.

To meet the set target this year, the Ministry of Industry and Trade has warned garment businesses to take measures to reduce dependence on outsourcing orders and focus on raising exports under the FOB (forward operating base) and ODM (original design manufacture) models. It should also increase the use of domestic materials and promote training to develop a highly skilled workforce.

BTA

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