Vietnam clothing manufacturers face slowdown.

Due to the economic downturn in the US and Europe, exports of every Vietnam clothes manufacturer could reduce significantly with the decrease in orders from the two markets for the next months of 10%.
In fact, a Vietnam clothes manufacturer usually received many orders in the three last months and first two months of a year but this year the situation seems to change, some Vietnam clothes manufacturers don't even have enough orders for December.
The economic meltdown taking place in some European countries in recent years had also affected Vietnam garment exporters. Jackets were the most affected items, with many firms seeing orders plunge 30 per cent. Exports to Europe were forecast to decline by 10-15 per cent.
Besides, Due to Government's monetary tightening policy of the US - the biggest market of Vietnam clothing manufacturers, many risks appear towards the exports of Vietnam garment manufacturers.
Therefore, Vietnam clothing manufacturers had to switch to other markets like Japan, the Republic of Korea, some other Asian countries, and Canada.

Alternative Markets for Vietnam Clothes Manufacturers

Due to economic turbulence, exports to traditional markets of Vietnam clothes Manufacturers seems to decline.  

As a result, every Vietnam clothing manufacturer is eyeing other alternative markets to maintain profit and growth.  

Japan, the EU and the US are still the most important markets of Vietnam Clothes Manufacturers, which account for 12 percent, 17 percent and 51 percent of the total exports respectively.  

Exports to Cuba in the first seven months of this year rose by 470.8 percent, while the respective figures recorded for the Indian, Korean, Thai and Chinese markets are 156 percent, 144.2 percent, 131.1 percent and 127.6 percent.  

The new markets account for 20 percent of the total export turnover of the textile and garment sector, doubling the figure recorded five years ago.  

Since Vietnam’s textile and garment products can pass the strict technical standards to enter the EU and the US markets, it is not so difficult for them to enter the others.

New projects to boost production of vietnam clothes manufacturers in center of Vietnam

Recently Nghe An's Department of Industry and Trade has encouraged projects with investment and expansion of every clothing manufacturer in the region to meet the country's objectives stated in the development plan for 2011-20 period. 

According to the plan, the target of Vietnam clothes manufacturers in Nghe An is to produce 16 million pieces of knitwear, 96 million garments and 284,000 tones of thread this year ( 160%, 115%, 133% increase compared with the previous year).

Currently, Nghe An is home to more than 2,500 Vietnam clothes manufacturers and is listed as one of the targeted province to build up specialized industrial cluster in the center of Vietnam.

$4.3 million worth investment from Italy to boost production of Vietnam clothing manufacturers.

In late July, 2011, the United Nations Industrial Development Organization (UNIDO) stated that Italy will spend $4.3 million in a sponsor program to develop clothing manufacturer in Vietnam together with 2 other industries namely leather shows and decoration wood.
According to UNIDO, Vietnam clothing manufacturer will be provided with investment to enhance technologies, expand product promotion and develop marketing campaigns and cost management systems. 

Also, 3-million-euro program will include the provision of training classes for the companies involved.

Together with this investment, Italy investors hope to get Vietnam clothing manufacturer loosen the high dependency on materials and designs supply from overseas, from which boost production and values of exports of Vietnam clothes manufacturers.

UNIDO will also aid in seeking business partners for Vietnam clothing manufacturers in the European market.

18 businesses in Hanoi and Hung Yen and 16 others in Ho Chi Minh City involved in the garment sector have been selected for receiving the support.

Japanese based company is licensed to open a new clothes factory in Vietnam.

The Tokyo Style Vietnam Hue Ltd Co was licensed to launch the construction  of its new clothes factory in Vietnam in Phu Bai Industrial Zone, Thua Thien Hue.
The investment worths US$21 million to build up a new Vietnam clothing manufacturer which specializes in exported. The project is proposed to finish on March 2012.

Tokyo Style currently owns 3 garment factories in China. Moving production to Vietnam is stated as a way to reduce the risk in production and widen the material supply chain.
The garment specialty for this new garment manufacturer in Vietnam is fashion clothes for women.
On completion, the production capacity of this Vietnam clothing manufacturer is expected to be around 400,000 products in the first year of operation and go up to 500,000 products annually at the following years. The number of worker initially is stated to be about 500 people and up to 1000 people.

With US$21 investment, This clothes factory in Vietnam is said to be the largest factory of Tokyo Style till date.

Investment to boost exports of Vietnam clothes manufacturers

Vinatex, the representative of clothing manufacturer in Vietnam has announced an investment of US$2.1 billion with projects to build new production facilities for Vietnam clothing manufacturer as part of the development of plan toward 2020.

This huge investment into Vietnam clothes manufacturers is supposed to generate an annual increase of 12%-14% in production value of clothing manufacturer in Vietnam and a 15% surge in export turnover.

Vinatex will focus firstly on building factories specialized in producing raw materials required for production, secondly on improving technology of equipments used to boost productivity, from which create and expand raw material cultivation areas.

The target is to produce 300,000 tons of fiber by 2020, 675 million square meters of fabric supply the raw materials required of most clothing manufacturer Vietnam to produce 706 million garment products per year and generate export revenue of more than US$ 5 billion.

To fulfill this target, the implementation plan is to develop 31 fiber plants, 21 fabric plants and 164 Vietnam clothes manufacturers in the next 10 years.

The source of capital will come from proceeds from auctioning land in highly-urbanized areas, bank loans, privatization of enterprises and foreign sources.

Also, as part of the regional planning, Vietnam clothes manufacturers which are in inner city will be relocated to the countryside. The raw materials zones will be located in 8 provinces including Dak Lak, Dak Nong, Ninh Thuan, Son La….

Moreover, top priority for clothing manufacturer in Vietnam is to diversify designs and improving quality by increasing the ratio of local content to reduce costs of import. Besides, evolving from sub-contracting to original design manufacturers is also a main target.

Vinatex takes over a Vietnam clothing manufacturer in centre of Vietnam

Dai Cat Tuong is a Vietnam clothing manufacturer located in Quang Ngai Province Vietnam. This clothes factory in Vietnam was founded in March 2005 with capital of 38 billion VND. 

After several years of making loss resulted by many strikes of workers in this clothing manufacturer in Vietnam in 2008, it came up with a suspension in production in 2010.
 
Vinatex, the representative of Vietnam clothes manufacturers has announced on 18th July that they has taken control over this clothing manufacturer in Vietnam by buying nearly VND 39.9 billion shares of the company in the auction. After the take-over, Vinatex would invest over VND 50 billion in renovating this clothes factory in Vietnam with plans to buy machines, build dormitories for workers and increase employment to 3000.