Vietnam’s textile and garment industry continues to be badly affected by the pandemic with only weekly or monthly orders arriving due to uncertain global demand. Some producers have seen September orders drop by 40-50 per cent, while orders have not been confirmed for the rest of the year and 2021, said a recent report by the ministry of industry and trade. Textile and garment shipments fell by 11.6 per cent year on year in the first eight months to $19.6 billion because of the pandemic, the report said.
Global demand for textile and garment products in the third quarter has not shown sign of reviving, as consumer confidence remains low in the United States, the European Union and Japan, three of Vietnam’s largest buyers. This has affected producers like Vietnam National Textile and Garment Group (Vinatex). Cao Huu Hieu, its deputy chief executive officer, said the company forecasts a 20 per cent fall in revenues this year.
“We have barely received orders for the last quarter, which is a major challenge for our production plans. Prices of masks have dropped to just enough to cover costs,” he was quoted as saying by a Vietnamese newspaper report.
Companies are doing their best to survive. Garment 10 Corporation Jsc (Garco10) is working to get long-term orders to ensure cash flows and retain jobs, while Vinatex seeks to boost domestic sales. Truong Van Cam, deputy chairman of the Vietnam Textile and Apparel Association (VITAS), said the domestic market is promising amid the pandemic though revenues from it would not be high since consumers are also trying to cut down spending. Companies also want the government to delay loan repayments to banks.
Vietnam’s textile and garment industry continues to be badly affected by the pandemic with only weekly or monthly orders arriving due to uncertain global demand. Some producers have seen September orders drop by 40-50 per cent, while orders have not been confirmed for the rest of the year and 2021, said a recent report by the ministry of industry and trade. Textile and garment shipments fell by 11.6 per cent year on year in the first eight months to $19.6 billion because of the pandemic, the report said.
