According to media reports, at present a lot of small Vietnam textile and garment enterprises plan to merge, and big companies have tried various methods to retain customers, including lower selling price.
A specifically for the United States and Japan in the past 10 years Vietnam manufacturers garment company manager, said the company is facing difficulties, mainly because of last year (2015) order rarely. The previous year (2014) the company forecast the market demand will increase, therefore, decided to set up factories in binh duong new, but order quantity is not as good as expected.
Many small businesses in all parts of north and south Vietnam, including ho chi minh city and bac ninh, has decided to auction, its factory for running more and more difficult. Between the sale price in 60 million and 60 million dong dong, depend on factory operating time and size.
Not small companies, big companies are facing difficulties, such as Vietnam's largest textile and garment group Vinatex to revenue growth of 11% (2015) years, pre-tax profit is the same as the first (2014) years. The company deputy general manager Hoang Ve Dung said Vietnam textile and garment enterprises must hard bargaining and to compete with China, India and Malaysia rivals compete.
Vinatex economic sentiment is still on the (2016) years feel pessimistic, the group plans to increase the productivity of 11%, and 8% increase in revenue target. Another the company senior manager Tran Viet, said the company will be very careful for the production plan in 2016, because of currency fluctuations is very big, will affect the execution efficiency of the enterprise. Dong, he said, volatility is the cause of the company did not increase profits. Mainland China, he explained, depreciation, 4.8% in fierce competitors, Malaysia and Vietnam and India currency depreciate against dong also huge. In addition of cotton and polyester fiber prices slumped, also affected the fiber manufacturers, customers cancel the contract or for sale.
Compete with China for Vietnamese companies is also a headache problem, Dung Vinatex company manager said that although China labor cost has increased, in mainland China manufacturers from Vietnam still has great advantage, because they can effectively control the supply and demand of textiles face. Vietnam, he said, only increase the production of raw materials can attract other markets.
Vietnam textile and garment of foreign direct investment (FDI) has recently increased dramatically, according to a new report shows that FDI in 2015 to $1.5 billion, equal to the sum of all domestic investment over the last 20 years.