Due to the renewed outbreak of the epidemic in Southeast Asia, which directly affects manufacturing and demand, it is expected that apparel exports from ASEAN member countries may show a downward trend in the next few months. Due to the increase in cases, some factories in Vietnam, Malaysia and other countries have been forced to close.
Southeast Asia is one of the major manufacturing centers of the textile and apparel industry, supplying products to well-known brands such as Japan, the United States, the European Union, and the United Kingdom.
Countries that have been hit hard by the outbreak again include Vietnam, Indonesia, and Malaysia. These countries are the major exporters of textiles and apparel among all ASEAN member states. According to industry stakeholders, the situation may last longer because it also relies on other Asian economies such as China, South Korea, and Taiwan, which have also been hit by a new wave of epidemics.
In addition, countries where the Delta virus is raging, such as Thailand, Vietnam, Malaysia and other regions, have implemented strict blockade measures and have suspended most major supply chains.
ASEAN apparel exports were US$46.3 billion in January 2021, growing significantly by 17.61% in the first quarter of 2021, reaching US$54.45 billion in March 2021. However, according to the Fibre2Fashionmarket analysis tool TexPro, exports fell by 37.08% in the second quarter of 2021, and the export value in June 2021 was US$34.26 billion.
ASEAN region’s apparel exports are expected to decline again by 7.76% to US$31.6 billion in October 2021, and rebound to US$36.5 billion in December 2021.
