Low demand for domestic made clothes

Clothing manufacturers are finding it increasingly difficult to sell ready-made stitched garments in the domestic market due to high fabric costs.

Clothing manufacturers are finding it increasingly difficult to sell ready-made stitched garments in the domestic market due to high fabric costs.  

Shoppers at a Sanding shop in Ho Chi Minh City (Photo: SGGP)
Shoppers at a Sanding shop in Ho Chi Minh City (Photo: SGGP)

Prices of global cotton and yarn have soared continuously, pushing up prices of fabrics by 40-50 percent.
 
Fabric wholesalers at Tan Binh Market said fabrics are not selling much in the local market. The volumes have dropped considerably even though it is nearing the summer peak season.
 
Nguyen Huu Toan, director of Sanding Fashion Company, said the total sales in the company’s 11 shops have reduced by 30 percent.
 
He added that not only have fabric prices climbed by 40-50 percent compared to the same period last year but also the price of thread, buttons and zippers has risen.
 
Mr. Toan said before the last Lunar New Year in February, a meter of cotton fabric cost only VND30,000 but now it sold for VND63,000 whilst a meter of khaki fabric fetched VND50,000 it is now VND90,000.
 
All kinds of fabrics, including those made of cotton and polyester, have seen price hikes.
 
Increasing prices of clothing material have pushed selling prices of clothes up by 30-50 percent, with the price of a shirt increasing to VND300,000 from VND200,000.
 
Not only shoppers but also manufacturers have realized that apparel prices have become too high.
 
Viet Tien Garment Company has seen decreasing sales in the local market too.
 
To minimize stock and avoid losses, clothing manufacturers have had to reduce production.
 
Mr. Toan said his company has had to cut off half of the production quantity. For instance, previously the company usually made about 300-400 pieces for one women’s shirt design in three colors and six sizes, but it presently makes only half that number.
 
Individual apparel makers in Tan Binh District have also been in the same boat. Many of them have had to halt or reduce production.
 
The price hike has inconvenienced local clothing manufacturers, who have to import material since they have to compete with low-priced clothing from China, which has an abundance of textile factories.

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