Vietnam apparel sector to face challenges in 2017

With global demand forecast to slow down, the Vietnamese textile and garment industry will continue to face challenges in the next year, mainly due to fierce competition from other exporting countries like India, China, Pakistan and Bangladesh.

The election of Donald Trump, who has indicated that he will not support treaties, may also impact exports.

This was parlayed by Le Tien Truong, general director of the National Garment and Textile Group (VINATEX), who also added that garment exports to the EU will also be under negative impact, as a result of Brexit.

“So, the industry is expecting export growth rate of just between 5-7 per cent, if no appropriate policies are announced,” a Vietnamese news agency quoted Truong as saying.

The Vietnam Textile and Apparel Association (VITAS) has approached the Ministry of Industry and Trade with several proposals to boost the industry. This includes reviewing policies on minimum wage raises and working hours, and boosting domestic as well as foreign investments in the industry.