According to the Vietnam Textile and Apparel Association (Vitas), almost 70% of garment and textile export firms have seen a dramatic decline in orders this month. The association believes around two million workers could be affected, either by layoffs, or by reductions in wages or hours.

Exports to the country’s main export destinations, Europe and the US, have fallen sharply as the global economic downturn continues. As a result, Vitas believes almost all textile and garment exporters in the country will have to reduce costs by at least 10%, despite recently introduced government support packages. It found that many firms had seen orders fall by 30-50% in March compared with March 2008.

Vitas believes it will be vital to enter, or increase exports to, other markets for example those in Russia, African countries and Middle Eastern markets.