Dong Nai’s Garment companies: not worry too much about US monitoring programme on Vietnam-made apparel

Although US importers have not placed orders for the third quarter of 2007 until the US Department of Commerce (DOC) makes comments under the framework of the textile and garment imports monitoring programme imposed on Vietnam-sourced apparel products, state- owned enterprises in Dong Nai like Dong Tien and Dong Nai garment companies still remain calm.

Dong Tien Garment Companys quality controlling department

Although US importers have not placed orders for the third quarter of 2007 until the US Department of Commerce (DOC) makes comments under the framework of the textile and garment imports monitoring programme imposed on Vietnam-sourced apparel products, state- owned enterprises in Dong Nai like Dong Tien and Dong Nai garment companies still remain calm.

According to General Director of Dong Nai Garment Company Bui The Kich, Viet Nam just accounts for a mere 3 per cent of the US’s total apparel imports, it cannot a threat to the US textile and garment industry. The average export unit price of Vietnamese-made products in 2006 was $2.96, much higher than the US’s average import unit price of $1.79; therefore, Vietnamese enterprises in general and Dong Nai company in particular is not dumping its textile products on overseas markets. Accordingly, the company is confident to put into operation its factory in Dinh Quan district on July. The VND25 billion factory is expected to reach turnover of US$6 million in 2007. Dong Nai Garment Company targets to achieve export turnover of US$36 million this year, up 20% compared to previous year. During the past five months of 2007, the company obtained an export value of US$14 million, 17% higher than that of 2006.

Director of Dong Tien Garment Company Nguyen Van Hoang said that the company will not be effected much by the monitoring programme because its export turnover to the US only account for 35-40 percent of total export value of the company. In the past five months, the company’s turnover reached VND70 billion. The figure is expected to be VND200 billion by the end of 2007, an increase of VND17 billion against last year.

In summary, both Dong Nai Garment Co. and Dong Tien Co do not worry too much about the US monitoring programme on Vietnam-made apparel products. They have got enough orders for this year.

Reported by Kim Loan.