According to Vietnam’s “Industrial and Trade News” report on August 27, Vietnam’s southern region’s textile and garment industry exports accounted for 62% of the country’s exports and are currently suffering a strong impact from the new coronavirus epidemic. The textile and apparel industry in the northern region faces the risk of disruption in the supply chain of raw and auxiliary materials. The industry as a whole is expected to be unable to achieve its export target of US$39 billion this year. Vu Duc Giang, chairman of the Vietnam Textile and Garment Association, said that due to the inability to implement the “three local” (local production, local catering, and local accommodation) production model, a large number of textile and garment companies in the southern region were forced to suspend production, and customers canceled orders. At the same time, due to social isolation, traffic restrictions, lack of manpower and other reasons, it is difficult to transport raw and auxiliary materials from the south to the north, and textile and garment enterprises in the northern region are facing great pressure to cut off supply.
Wu Dejiang said that if the epidemic in the southern region is effectively controlled by the end of August and early September and companies resume production, the industry-wide export volume this year is expected to be 32-33 billion US dollars. . If the epidemic continues to evolve in a complex manner, exports throughout the year will be difficult to predict. Textile and apparel companies that were shut down due to the epidemic in 2020 will also find it difficult to resume production. Vietnam’s textile and garment industry will face a crisis of losing customers. This is a very serious problem. Not only is it as simple as losing orders, it may also result in Vietnam’s position in the global supply chain being weakened, which will take a long time to recover.
