Vietnamese textile-garment industry strong but not stable

Vietnamese textile-garment industry strong but not stable

Vietnam has risen to the top three largest textile and garment exporting countries in the world. However, it is worrisome that the development structure of enterprises in the textile and garment industry is unbalanced, with garment enterprises accounting for the majority and those producing raw materials being very few. This fact makes the textile industry face the challenges of instability of growth.
Enterprises encounter raw material shortage

Enterprises encounter raw material shortage

Since the beginning of the year, although export turnover has increased by 14.2 percent, import turnover has surged by more than 16.7 percent. The trade balance saw a trade deficit of nearly US$600 million, of which, imported goods were mainly raw materials for production. This shows that domestic enterprises are still dependent on and short of imported materials.
MoIT tightens export activities to lower goods prices

MoIT tightens export activities to lower goods prices

The prices of many domestic and imported raw materials have climbed by 10-300 percent. This fact has put many enterprises, especially food and foodstuff manufacturing enterprises, at risk of having to increase their selling prices. Amid such context, the Ministry of Industry and Trade (MoIT) has issued regulations to restrict the export of some groups of raw materials in the production chain of domestic enterprises. This is a necessary solution to lower the cost of these items.