Lao apparel makers are suffering from global financial crisis

Lao apparel makers are suffering from global financial crisis

(KPL) The Lao garment industry would be trending downwards and it would suffer from reduced demand in 2009 because of the contagion of the financial crisis in US, said the chairman of the Lao Garment Industry Association, Mr Onsy Bousivongsak.
This is because of declining orders from the United States of America and this is a contrast to the figures of 2008, Mr Onsy added.
“This change has serious repercussions on the economic and social life in Laos as the garment industry of this country is one of the three pillars of the economy,” he said.
“However the volume of the trade in garment between Laos and USA is small and it is just 15 per cent of the total output of garment in Laos”, said the chairman.
Owing to falling orders from this country the Lao garment manufacturers are looking for new markets to fill the gap, added Mr Onsy.
Giving a backdrop to the current problem he said that in 2007 the Lao garment plants were running at full capacity so that its total export was worth US$157 million and the European countries were its main market, accounting for 80 percent of its output.
While the global financial crisis is posing a real threat to the healthy operations of the garment industry, however there is a glimmer of hope as some of the current customers are demanding quality finished products, Mr Onsy told the Lao journalists this week.
Regarding this, Mr Onsy called on all garment factories to be highly sensitive to the demand of the market for high quality work.
However, the Association of Lao Garment Industry recently convened a meeting to find ways and means to address the current situation and to minimize the impact of the current financial crisis in the world on the garment industry in Laos, said the chairman.