The Vietnam Textile and Apparel Association (VITAS) recently stated that due to the continued sluggish market demand caused by the EU debt crisis, export orders for Vietnam’s textile and apparel industry have decreased. However, there are still some companies that continue to expand overseas business by reducing production costs such as raw materials and electricity and using the free-on-board (FOB) settlement method.
Pan Fuqiang, chairman of the NBC Management Committee, said that the company has set up a department to implement FOB contracts and hired foreign managers to carry out FOB business in the United States, the United Kingdom and France. The company also plans to further expand its FOB business in the next few years to create more profits for the company.
TheGarco10, another large clothing company in Vietnam, is still growing in its export scale due to its cooperation with buyers such as Target and Macy. A senior executive of the company said: “Thanks to the company’s large production scale and diversified products, the export volume in the first half of this year reached 80 million US dollars.”
The vice president of the Vietnam Textile and Garment Association believes that the reduction in exports to the EU market is expected to continue until mid-2013. Therefore, Vietnamese garment exporters should learn to help themselves and resolve the adverse effects of market recession through various methods. ”
