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Small and medium Vietnamese enterprises face challenges

According to Vu Duc Giang, Chair of the Vietnam Textile and Apparel Association (Vinatas), the Vietnam’s textile & garment industry is facing big challenges. Giang said many small and medium enterprises have had to shut down because they could not get orders to retain jobs.

A lot of partners have shifted to place orders with Myanmar and Lao instead of Vietnam because exporters from the two countries can enjoy preferential tariffs when exporting goods to US and European markets.

Meanwhile, Le Quang Hung, chair of Garmex Saigon, said he was worried about the strong rise of rivals from Myanmar, Laos, Cambodia and Bangladesh, admitting that the companies there can fulfill orders at more competitive prices than Vietnamese companies thanks to the lower labor costs.

However, Hung said that the problem was not too serious for the company because Garmex Saigon in recent years has been gathering strength on making products which require high-level technique.

At the enterprise with more than 4,000 workers, the factories in Vung Tau City and Quang Nam province, which have lower production costs, are in charge of making products which do not require high technique, such as T-shirt and jeans. Meanwhile, its factory in HCM City focuses on implementing high-value orders which require higher technical standards.