Under the dangerous situation of the new coronavirus epidemic in August, Vietnamese textile and garment companies are facing the risk of losing orders. More than 4/5 of the textile and garment companies in South Vietnam have been forced to reduce production or suspend operations. To combat the epidemic, only 70-80% of businesses in North Vietnam are operating.
Gia Dinh Group, located in the southern province of Binh Duong, has received orders until the end of December, but it faces higher material prices, delayed shipments, and higher logistics costs. And other issues. According to Vietnamese newspaper reports, the company’s management committee said it would not be able to deliver these orders if the epidemic continues.
Vietnam Textile and Apparel Association (VITAS) Chairman Vu Duc Giang said that it is “extremely difficult” to carry out production in August, especially for companies in South Vietnam that have to implement social distancing policies. According to reports, up to 90% of peripheral supply has been cut off.
Chairman Wu said that delivery pressure during the epidemic is a big challenge for textile and garment companies. If they cannot deliver on time, customers will cancel their orders. , which will affect production this year and next year.
Chairman Wu said: If the Vietnamese market becomes unstable, partners will transfer orders to other countries. Clothing is a seasonal product, and no one wants to buy out-of-season clothes even if they are on sale.
Vietnam’s Ministry of Industry and Trade also pointed out that textile and garment companies face the risk of international customers delaying or canceling orders and shifting the focus of production to other countries. Even if the epidemic is brought under control, it will take a long time to restore business relationships.
Chairman Wu mentioned that many workers have left Ho Chi Minh City and returned to their hometowns to avoid contracting the new crown epidemic, but even if the epidemic slows down in the future, it is estimated that there will only be 60 -65% of workers returned.
According to data from the Vietnam Bureau of Statistics, Vietnam’s exports of textile and garment products totaled US$18.6 billion in the first seven months of 2021, an increase of 14.1% compared to the same period last year. </p
