Vietnam Economic News

Advertisements

Random Post

• Vietcombank posts $146mil in profit
• RoK legislator visits Vietnam
• Vietnam president calls for more South Korean investment
• Deposits at HCMC-based Banks Jump 27.5 per cent to VND688T in H1
• Vietnam Eyes US$1.3B from Pangasius Exports This Year
• Nine VND195T Transport Projects Still Waiting For Investors

Vietnam Economic News

Vietnam Business » Vietnam Economic News » Power cuts threaten footwear, garment, textile industries

Power cuts threaten footwear, garment, textile industries

Garment, textile and footwear makers in Dong Nai and Binh Duong provinces risk losing customers over lengthy factory stoppages caused by power cuts.

Many enterprises said it was a battle to produce and deliver products on schedule because of power cuts two days a week since April.

"My companys production output reduced by 15-20 per cent in April from the previous month due to outages," Pham Van Toan of Nam Dinh Garment Joint Stock Company said.

Toan said he was planning to negotiate with importers to extend shipment times, but it wouldnt be easy.

Nguyen Duc Thuan, chairman of the Viet Nam Leather and Footwear Association, said since early this year, enterprises signed many export contracts for 2010 as the US, China and South Korean markets started to recover.

However, with the current power cuts, they couldnt deliver on schedule, which could mean hefty fines and possible customer losses, Thuan said.

In Binh Duong Province, the power company supplied a schedule for two days of cuts, then changed it unexpectedly, causing many difficulties for enterprises, he said.

Garment/textile and footwear sectors are the countrys most important export sectors. They are recovering from last years economic slowdown.

To ensure they meet deadlines, companies have been working overtime when the power was on, including weekends and holidays.

Le Quoc An, chairman of the Viet Nam National Garment Textile Association, said, "Power cuts have badly affected enterprises production and trading plans. If the situation is prolonged, the sectors export target would be hard to achieve."

Both An and Thuan have asked the Viet Nam Electricity Group to reduce power cuts from two days to one day a week to help enterprises fulfill their export orders.

The power should be supplied as a priority to firms working on export orders, Thuan said.

Garment and textile exports last year reached US$9.1 billion, topping the list of Viet Nams major export items. Meanwhile, earnings from footwear exports were $4 billion.

Ensuring power supply for the sectors would help them capitalise on the opportunities after the crisis to increase export value.

Vietnam Business And Financial News Network. Source [english.vietnamnet.vn]

More Vietnam Economic News:

• Price hikes upset paper firms
• Private sector ignoring green technology
• Overseas remittance to Ho Chi Minh City in first quarter 2010 reached US$964 million
• Vietnamese beverage market lures investors
• Vietnam Ministry of Transport boosts transit project funds
• Vinacomin to spend VND4 trillion on breakwater at Ke Ga Seaport
• Vietnam GDP growth of nearly 6 percent in Q1
• Vietnam industrial sector recovers
• Vietnam still be low-income country
• Long Huong JSC sets up industrial zone in Ba Ria Vung Tau

Popular Vietnam Business News

Tasco plans to raise chartered capital to 135 billion dong

In details, the company will issue 5.5 million shares for existing shareholders with par value of 10,000 dong per share, under the ratio of 1:1 or one old share for

Vinashin Affiliate Launches First Car-carrying Ship

. Ha Long Shipbuilding Company, an affiliate of Vietnam Shipbuilding Industry Group (Vinashin), launched a 70,000 DWT car-carrying vessel on Tuesday, July 21 in the northern province of Quang Ninh.

Tolls proposed on cars using downtown streets

The citys Tien Phong Technology Joint Stock Company has proposed starting toll collection on cars using downtown streets from January 2012 with a fee level from US$1 to US$2, or

Vietnam hub recalls milk with content deficiencies

Health inspectors in Ho Chi Minh City on Wednesday ordered the recall of five milk products that did not contain the quantity of protein announced on their labels, and suspended

Leap in exports pushes trade deficit to $5.4b in five months

The countrys trade deficit reaches US$5.4 billion in the first five months of the year, according to experts from the General Statistics Office (GSO). The trade deficit was equivalent to

World Bank Predicts US$2.6B Surplus in Vietnam Balance of Payments in 2010

An excess of US$11.7 billion in the capital account will help Vietnam cover a shortfall of US$9.1 billion in the current account this year, the Hanoi-based Chief Economist Martin Rama

HCM City holds global marketing expo

The countrys first-ever International Advertising Equipment and Technology Exhibition opened August 5 in HCM City. The three-day event, Vietad 2010, has attracted more than 150 booths and nearly 70 domestic

Businesses weary of revised automatic import license procedure

Long Quoc Trung, Director of Matsu Electronics, a distributor of refrigeration equipment from Malaysia, said he is nervous because after two weeks, he still has not got confirmation of his

Advertisement