More than 68% of footwear and apparel manufacturers in Vietnam have been penalized by buyers for delayed delivery due to social distancing requirements in factories, with some manufacturers facing order cancellations and compensation demands .
VinExpress newspaper cited the results of a survey conducted in September by trade bodies representing Vietnamese footwear and apparel manufacturers, LEFASO, and VITAS, as saying that more than 12 % local companies have had orders canceled by customers and demanded compensation for liquidated damages caused by delays. About 21% of respondents said that orders were canceled without other requirements.
Nearly half of respondents in Vietnam blamed long-term social distancing measures for delayed deliveries.
Delayed delivery has caused some customers to move orders to other countries.
VinExpress quoted Employment Relations Research Center Do Quynh Chi as saying that this shift is expected to last for the next five months, but may be temporary and mainly to satisfy Shopping needs in Europe and the US later this year.
According to LEFASO data, clothing and textile exports fell 44.2% year-on-year to approximately US$700 million.
In early October, the Office of the United States Trade Representative announced that the United States and Vietnam had reached an agreement to resolve the lumber 301 investigation, Steve Lasdfssdfsmasdfssdfsr, President and CEO of the American Apparel and Footwear Association (AAFA) said , I’m glad to hear the news that at least clothing, footwear and accessories imported from Vietnam to the United States will not be subject to additional tariffs in the short term. </p
