The month of Tet was considered the right time for garment companies to boost sales to earn money. However, the statistics released by the Ministry of Industry and Trade showed that the companies did not gain much during the days of Tet, despite big efforts to do marketing for their products.

The sales of clothes products for adults in January 2009 were just equal to 94.1% of the sales in January 2008. Vietnamese consumers’ belt tightening has been cited as the main reason for the sales decreases. However, analysts have pointed out that it was also because domestic products proved to be less competitive in comparison with China-made products, which always have soft prices and diversified designs.

As for exports, garment companies have been facing sharp decreases in export orders. Many foreign invested garment companies in Dong Nai, Binh Duong, Vung Tau and Long An provinces have shut down, dismissing workers.

The situation is expected to become more difficult since the commodity prices in the main export markets are forecasted to be cut by over 20%. The US, the biggest importer of Vietnam-made apparel, is expected to cut garment import orders by 15%.

Meanwhile, officials have provided warnings about the new barriers in exporting apparel products to the US.

The US Consumer Products Safety Commission has decided to impose additional measures to strictly examine the apparel products to be imported to the country. The measures have been applied since February 2009.

The Ministry of Industry and Trade of Vietnam (MOET) has confirmed the news, saying that the apparel exports of Vietnam and other apparel export countries have been facing another barrier to enter the US market.

The commission will strictly examine import products to ensure the safety of products, including the examination over the inflammability of the products. MOET has reminded Vietnamese garment exporters of the new regulations in order help prevent Vietnam-made products from being refused.

According to the Vietnam Textile and Apparel Association (Vitas), the association has predicted the garment export turnover of $9.5 billion in 2009, a modest increase of 5% in comparison with $9.1 billion gained in 2008. Of this amount, 50% of exports are targeting the US and EU markets.

It is estimated that the number of workers to be dismissed from garment workshops shutting down would reach tens of thousands people.

Garment companies have asked the Government to extract 1% of the export turnover to give financial support to laborers in the enterprises in difficulties which are threatened with being shut down.

To struggle with the difficulties to survive, companies are eyeing new markets like the Middle East, East European countries and Africa.

In related news, MOET has said that the export prices of Vietnam-made products have been decreasing.

It said that the prices of all key export items like coffee, tea, pepper, cashew nut, vegetable and fruits, and rubber have decreased over the previous month and have decreased by 30% over the same period of the last year.

Seafood exporters are facing big difficulties as the world’s export prices have been sliding, while the material supplies have become short as farmers do not breed fish any more after they suffered big losses last year. Besides, they are facing another big challenge as Russia has halted importing tra fish from Vietnam.

The difficulties are also occurring with other categories of products.

The export turnover of other products like apparel, footwear, computer components, wood work and plastics products have seen decreases of 20-30%.

Vietnamese enterprises now find it very difficult to seek orders as the consumption demand in the world has decreased. It is even uneasy to seek contracts on crude oil exports.

Source: VietNamNet, TBKTSG