Cost-Cutting Initiative From Vietnam

Cost-Cutting Initiative From Vietnam

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During a recent seminar of the Vietnam Logistics Association experts suggested that textile raw material importers should club their imports with the garment industry to reduce logistic costs. The estimated benefit could save the apparel industry more than $1 billion per annum.

Vice chairman Ngunyen Tuong noted that much of the textile raw materials are imported while garment products are exported. In his opinion, closer cooperation between these two industries will create a larger shipment, which offers benefits to aid in reducing logistic costs.

The suggestion was second by Truong Van Cam, vice chairman of the Vietnam Textile and Apparel Association who was quoted saying: “High logistics costs are weakening competitiveness of Vietnamese apparel products in the global markets, so it is utmost necessary to reduce these costs”

A more effective and economical import and export initiative model should be discussed in all the regions of Asia and South East Asia to find more cost effective alternatives. Thus, more talks are underway in various regions.