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Vietnam looks to cut sourcing costs to boost garment exports

Vietnam’s rapid growth in textiles may be tapering off. The country’s Ministry of Industry and Trade said global demand for textile garments fell in the first eight months of the year due to rising workforce wages and logistics costs.

“Wages for workers and logistics costs have been rising, putting local garment exporters under pressure, particularly in the face of fierce competition from regional rivals like Bangladesh, Myanmar and Cambodia,” according to local reports from The Voice of Vietnam.

Competition from regional rivals, such as Bangladesh, Myanmar and Cambodia, is also fierce. Textile companies from those competing countries enjoyed preferential policies from their governments— including tax breaks and boost exports— where Vietnam has not had as many of these perks. They also enjoyed preferential trade status from major trade partners like the US and European Union.

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