Rising raw material prices affect Vietnam’s clothing production and sales
According to a recent report on the website of Vietnam’s Saigon Liberation Newspaper, the continued rise in world cotton and yarn prices has caused Vietnam’s fabric prices to rise by 40-50%, which has had a negative impact on domestic clothing production and sales.
First, raw materials have prices but no market. The price of fabrics and accessories has increased significantly. For example, khaki fabric has increased from 50,000 VND/meter to 90,000 VND/meter. However, sales have been sluggish. Although the summer clothing production peak period has entered, sales volume has still declined significantly.
The second is to reduce the production of ready-made garments. Garment companies have taken measures to reduce production to reduce investment, reduce inventory and avoid losses. Some clothing production has even been reduced by more than half.
Third, clothing sales have declined. In the context of weak domestic purchasing power, garment factories are forced to increase the price of ready-made garments by 30-50% due to increased input costs, resulting in a significant decline in clothing sales. Product sales of Saigon Textile Joint Stock Company No. 2 have dropped by 30%.
Fourth, it faces competition from Chinese clothing. China’s clothing raw materials are self-sufficient, production costs are low, and low-priced Chinese clothing poses great competitive pressure on Vietnamese clothing.
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