Vietnam hasn’t gained much from US-China trade
war, says VITAS Chairman
Shifting of orders from China, amidst US-China trade war, hasn’t
helped Vietnam much, contrary to what people expected.
This was recently confirmed by Vu Duc Giang, Chairman, Vietnam
Textile and Apparel Association (VITAS) while talking to media.
The Chairman added that though many experts feel Vietnam has the
opportunity to get big orders shifting from China, it’s not
actually true. “When global buying falls, producers have to
calculate to further reduce the cost of goods,” explained Vu Duc
Giving credence to the above, he said that Vietnam now
manufactures products for medium and high-end market and hardly
any low-end products. Therefore, the buyers will shift their
orders to other countries like Bangladesh and Myanmar as the
average minimum wage in these countries is US $ 150, whereas it
is US $ 350 in Vietnam.
He also said that Vietnam’s yarn exports to China too have gone
down by 80 per cent in the first 6 months of 2019. “Following
the US imposition of 25 per cent tariffs on Chinese products,
our Chinese buyers asked us to lower prices, but we could not
and accepted lower exports to the market,” averred the Chairman.