Economic crisis hits Q2 export orders
Economic crisis hits Q2 export orders
Domestic exporters are experiencing reduced orders for this year's second quarter because of the economic crisis in the export markets, experts have said.
Pho Nam Phuong, director of the HCM City Investment and Trade Promotion Centre, said that domestic exporters normally signed export contracts at the end of the previous year for full orders by the end of this third quarter.
Since the end of 2011, however, almost all local exporters had struggled to secure export orders, Phuong said.
Pham Xuan Hong, deputy chairman of the Viet Nam Textile and Apparel Association (Vitas), said export orders for the textile and apparel industry in the second quarter fell by 10-15 per cent against the same period last year.
In the first quarter, exports of textile and apparel fell by 30 per cent to the EU and 16 per cent to Japan, Hong said, adding that some enterprises had returned to the domestic market but they were not very successful there.
According to the Viet Nam Leather and Footwear Association (Lefaso), few enterprises from the sector had signed export contracts for the second quarter.
The number of export orders for the second quarter had also reduced by 20-30 per cent in comparison with the same period of last year, Lefaso said.
The reduction in export orders was due to the difficult economic climate in the export markets and also the increasing demand for higher quality and eco-friendly products in the EU, the US and Japan, said the Trade Promotion Department under the Ministry of Industry and Trade.
Diep Thanh Kiet, Lefaso deputy chairman, said demand in the Europe used to account for 50 per cent of all leather and footwear exports from Viet Nam, but orders had dropped due to the economic crisis.
Therefore, the industry planned to look for new export markets, including Australia, Russia, and certain South American and North African countries, Kiet said.
Meanwhile, the Investment and Trade Promotion Centre would open an export forum on May 18 in HCM City for foreign trade officers, economic experts and industry representatives to discuss ways to help the exporters overcome the existing difficulties, Phuong said.
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