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| Over two million workers in garments-textiles industry to lose jobs |
| 12-MAR-2009 Intellasia | Vietnamnet |
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| 12 Mar, 2009 - 7:00:00 AM |
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The Vietnam Textile and Apparel Association (Vitas) reported that nearly 70% of garments and textiles export businesses, as of March 2009, are seeing a sharp drop off in new orders, which force more than 2 million workers in the sector into either unemployment or reduced hours and wages.
According to Vitas, in 2009 the country's garments and textiles sector is facing many difficulties because of the sharp decline for its products from Vietnam's major export markets, namely the US and the EU.
Because of the reduction in order, almost all exporters will be forced to reduce their costs by at least 10%. Although the Vietnamese government has recently introduced policies to support them, the export businesses just do not have enough new orders from their traditional buyers in import markets.
Some representatives from garment and textile businesses report that they are seeing a reduction of 30-50% year-on-year in March. This sharp drop off in new orders is shocking to them,
For this reason, many domestic export businesses are thinking of resuming selling to foreign wholly invested businesses in Binh Duong Province that have surplus orders. They said that employment with reduced hours and wages is better because the workers will still have jobs and can wait for new opportunities.
Also according to Vitas, the expansion of export promotion to new markets is the top priority of Vietnam's export sector at this time, and that the Russian, African and Middle Eastern markets are being targeted.
Vietnam is gearing up to organise a major trade fair for Vietnam's export commodities in Russia in September, 2009 because the Vietnam's exports to Russia soared to more than US$700 million in 2008.
Vietnam also expects to raise its import turnovers from Russia to US$1 billion in 2009. However, to speed up exports to this market, it will be necessary solve problems in two-sided macro policies, with the most difficult being the fact that payments via the Russian banking system is not "open". Moreover, import duties in Russia quite high, nearly US$20 per commodity kilogram at the moment.
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