How does yuan price reduction affect garment, footwear industries?
The sudden depreciation of Chinese yuan against the US dollar brings more difficulties to Vietnam’s yarn industry, according to Vietnam Textile and Apparel Association (VITAS).
Vietnam imports cotton from the US to make yarn products for export to China. If the yuan continues to fall, Vietnam’s yarn producers will continue to face difficulties, the association said. They also face fierce competition from domestic foreign-invested (FDI) enterprises and businesses from competing countries such as India, Thailand, Indonesia, and Pakistan to get contracts.