Vietnam’s textile and garment companies are experiencing tough days with falling turnovers. Some have had to scale down production, while others are facing closure. They have to try to take any job they can to survive. Foreign partners try to force prices down. If the companies don’t accept lower prices, they lose orders. If they do, they incur losses. So companies have to accept a price decrease of 10 to 15 per cent and sometimes 20 per cent for some orders.

Vietnam now has to compete fiercely with Bangladesh and Cambodia. Orders are leaving Vietnam for countries which give support to their enterprises and can enjoy preferential tariffs when exporting products to large markets. Meanwhile, Vietnamese enterprises are burdened with social insurance, healthcare and unemployment insurance premiums. While the profit is modest, just four to six per cent per annum, the cost has increased by tens of per cent.

Vietnam recorded a six per cent export increase in the first half of this year. There was a growth in export value to major markets. Exports to the US rose by 5.9 per cent, to Japan increased by 2.9 per cent, and to South Korea increased by 15.58 per cent.