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Vietnam'S Clothing Companies Lack Labor Force

2012/2/23 14:04:00 10

Vietnamese Clothing CompaniesVietnamese Clothing Industry

  

Vietnamese clothing companies

It can be predicted that 2012 will be a difficult year for them.

Many units are still waiting for orders from foreign importers, competing with other units for workers.


The Vietnamese textile and Apparel Association (Vinatex) said that only 70% of the enterprises had orders for the first quarter of this year. Several units had orders for the second quarter and the third quarter. Other units could barely afford to spend their lives, and did their best to look for orders in the coming months.


Viet Tien is

Vietnam?

A large garment production and export company, which only has orders for the first quarter of this year, even if the company has a good relationship with importers as a large production company.


"The company is still trying to find more orders for the second quarter of this year," said Pham Van Kiet, deputy general manager of Viet Tien clothing company.

The company's current situation is quite different from previous years.

At this time of 2011, Viet Tien received enough orders throughout the year.


Employment is more difficult and prices remain unchanged.


In January 2012, a clothing company in Pingyang revealed that the company clenched its teeth and accepted orders from a loyal customer. They had a long hard bargaining.

The company's representative said that the company accepted the conditions of keeping prices unchanged, despite the increase in production costs.

However, customers are still trying to cut the price of a few cents.

Eventually, the company had to accept the order, down from $12 / piece to $11.2 / piece.


However, even those who have enough orders in the first quarter of this year still feel worried. If customers cancel the order, they will not have jobs and can only make the production line idle.


Clothing companies have good reasons to worry because many customers have changed orders in the last few minutes since the second quarter of 2011.


Scramble for workers


  

Vietnam textile and clothing

Fan Chunhong, vice president of the association, said the lack of labor is based on mitigation.

However, the company is currently facing unhealthy competition in attracting workers.


Some companies are trying to attract workers by offering high wages.

However, they tried to deduct the wages of workers. If workers were absent from work one day, they would execute a fine of 20-30 000 Dong.

In addition, if workers fail or fail to produce enough products, they will be fined.


Although clothing companies try to attract workers by offering high wages, Fan Chunhong believes that this is just a temporary measure.

In the long run, paying 6 million Vietnamese Dong / month wages will take risks.

The average wage provided by clothing companies is 400-450 000 Dong / month.


  

Vietnam textile and Garment Association

In Vietnam, only 10% of enterprises can pay 6 million Vietnamese Dong / month average wages, but this includes 13 months' salary, holiday bonus and welfare.


In January 2012, Vietnam exported $1 billion worth of clothing products, down 12% compared to the same period last year.

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