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Vietnamese Garment Industry Fights to Meet Export Targets

Vietnamese Garment Industry Fights to Meet Export Targets

Write: Urvan [2011-05-20]

Despite the Prime Minister's request to avoid power cuts in the North, specially for the major foreign exchange earning garment and textiles industry, the pleas have gone unheeded causing immense losses and missing of delivery schedules.

The fertilizer and steel industry is also suffering heavy lossess due to power shortages which have affected 15 of the total 23 steel rolling enterprises of the association - those located in the North affecting the output.

Companies like Ha Noi Textiles Company have reportedly incurred losses worth US$400 due to cloth catching fire during cutting operations due to erratic power supply.

A major company Viet Nam Textile and Garment Corporation (Vinatex) having 29 affiliates in the North, has been affected due to blackout rendered execution delays in it's subsidiaries?export contracts.

More than losses, it was the erosion of customer confidence that was causing concern in the garment and textile industry.

Besides power, water supply has also been badly affected and underground water table has fallen to between 20-30 per cent, sources said.