Cloth boss note: textiles are shipped to this place carefully return or lose money

Reporters from Shaoxing Keqiao Office of Inspection and Quarantine Bureau was informed that the Vietnamese customs implementation of the new import policy for textiles, toys, household appliances, alcohol and other products are more stringent import requirements. "One of strict restrictions on imports of textiles and so on, which is closely related to the Keqiao textile exports." Keqiao Office official said.

Vietnam Customs implements a new import policy and imposes stricter import requirements on textiles, toys, household appliances, alcohol and other products.

According to reports, the new regulations can be summarized into the following five:

First, all textile and apparel products need to pass formaldehyde and aromatic amine tests;

Second, toys, household appliances need to provide quality certification from the local testing center in Vietnam;

The third is to ban the import of alcohol;

Fourth, the brand product must provide a genuine brand authorization;

Fifth, the clothing products need to pass the quality inspection, and the quality inspection guarantee signed or stamped by the manufacturer or the salesperson or the fabric samples used in the product are provided.

According to statistics from the Shaoxing Inspection and Quarantine Bureau Keqiao Office, the value of textile and apparel products exported to Vietnam by Keqiao District in the first half of this year was 295 million US dollars, up 6.55% year-on-year. "This new Vietnam policy will have a substantial impact on the relevant export enterprises in our district." To this end, the staff of the inspection and quarantine department reminded enterprises to pay attention to the new Vietnam policy in a timely manner and actively respond to measures to avoid unnecessary problems for the new government. Loss and trouble.

Vietnam's local textile and apparel companies face an extremely difficult situation

First, the cost has risen, and the wage level has increased rapidly for many years.

The Vietnamese government has implemented an annual incremental mechanism for minimum wages. Over the years, the minimum wage for Vietnamese workers has grown at an average annual rate of 12-15%, while social insurance premiums (22% of basic wages) and union fees have also risen. Currently, Vietnamese clothing companies are artificially Costs accounted for 65-70% of the total cost, 10 percentage points higher than a few years ago, and the company was overwhelmed. And the Vietnamese government intends to start from 2018, the social insurance premiums should be based on the total income of employees, when the enterprise will be more difficult to bear. In addition, the bank loan interest rate (8-10%/year) is high, which is also a big burden for enterprises.

Second, the unit price decreased, orders decreased

Due to the impact of the global economic downturn, especially from the competition of similar products from China, India, Bangladesh and Cambodia, the orders are seriously insufficient. Many enterprises are underemployed and some face the edge of bankruptcy. In the case of insufficient orders, customers also deliberately push down prices by 10-15%, or even 20%. However, in order to ensure the operation of the factory, the company has to swallow the orders, even so, the orders are still insufficient.

Third, another factor to reduce the competitiveness of Vietnamese clothing companies is the Vietnamese Dong fixed exchange rate.

According to the report, the Vietnamese Dong is bound by a strong dollar, while the currency of the main export market of Vietnamese clothing has depreciated sharply: if the euro depreciates by 18%, the yen depreciates by 17%, and the yuan depreciates by 8%. At the same time, Vietnamese competitors, such as other ASEAN member countries such as India and Bangladesh, have also depreciated by 10-20%.

Vietnam's textile exports are difficult to achieve annual targets

The above factors make Vietnamese clothing 20-30% more expensive than other competitors, and it is impossible to compete at all, resulting in the loss of orders.

According to the Vietnam Economic Times, according to the Vietnam Textile Association, in the first six months of this year, Vietnam’s textile industry exported $12.6 billion, only 41% of the annual plan target, up only 5% year-on-year.

Wu Dejiang, chairman of the Vietnam Textile Association, said that the growth rate of Vietnam's textile industry in the first six months of this year was lower than expected, the lowest in 10 years. The main reason is that in the context of the global economic situation still facing difficulties, international textile prices have fallen, and consumer demand in many countries has slowed down.

In addition, Vietnamese textile companies face fierce competition in the export market, rising labor costs and many difficulties from policy. The export value of clothing, yarn, thread and fabrics has dropped significantly. It is estimated that the annual export value of the textile industry is only 29 billion US dollars, and it is difficult to complete the target of 30 billion US dollars proposed at the beginning of the year.

Edited

Since the signing of the TPP agreement, foreign investment in the Vietnamese textile industry has been heating up. According to media reports, foreign direct investment in the textile industry in Vietnam is mainly from the United States, China, Japan and other countries. China's investment in Vietnam's textile industry is also very active, with the third largest investment in the world in January 2016.

In 2015, Vietnam’s textile and apparel exports amounted to US$27.5 billion, but it required imports of US$14 billion in raw materials. Therefore, Vietnam needs to solve the problem of imported raw materials. It is understood that the investment of a Garment worker in Vietnam is only 3,000 US dollars (human and technology), but the investment of textile workers and printing and dyeing workers is as high as 200,000 US dollars. It is difficult for Vietnamese SMEs to invest a lot of money in textiles and printing and dyeing. Now, the shortcomings in this area have brought tangible challenges to the domestic textile industry in Vietnam. Factors such as rising labor costs, falling unit prices, and reduced orders have also made Vietnam's local textile service companies face an extremely difficult situation! Therefore, Vietnam needs the right to guide the market, to maintain their healthy development with strict environmental laws.

It seems that Vietnam and even Southeast Asia are not as beautiful as you think!

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