In recent years, as the reputation of Vietnam’s manufacturing has become more and more famous internationally, more and more clothing giants have chosen to locate their production lines in Vietnam. However, due to the spread of public health emergencies around the world, Vietnam’s garment manufacturing industry has also suffered a chain reaction. According to news released by the Nikkei Asian Review on April 19, data from relevant Vietnamese departments show that orders for Vietnamese textiles and footwear are expected to drop by approximately 70% year-on-year from April to May 2020.
According to reports, Vietnam’s industry and trade department predicts that even if the epidemic trend can be controlled by the end of May, Vietnam’s textile industry will lose 1 trillion VND this year ( Equivalent to approximately RMB 300 million), which is approximately twice the net profit of Vietnam’s entire textile industry in 2019 of VND 510 billion. It is reported that Vietnam’s pessimistic outlook on the textile industry is due to the fact that European and American clothing giants have suspended operations due to the impact of the epidemic, and Vietnamese clothing suppliers have not received new orders. Previously, Vietnam’s exports to the EU were expected to drop by 8% in the first and second quarters of this year.
It is worth mentioning that at a time when its own textile industry is facing a major test, Vietnam has turned around and launched an anti-dumping investigation into Chinese textile raw materials. According to Vietnamese media reports, on April 6, relevant local authorities in Vietnam decided to launch an anti-dumping investigation into textile raw materials from China, India, Indonesia, and Malaysia – some polyester long fibers (also known as filament yarns). It is reported that the survey was first initiated by the local textile industry leader in Vietnam, hoping to increase its own market competitive advantage through this move.
Data shows that 55-60% of the raw and auxiliary materials for Vietnam’s textile industry are supplied by China, and clothing raw and auxiliary materials, yarns, fabrics and other related materials are mainly imported from China. However, although many clothing giants choose to deploy production lines in Vietnam, after years of development, China’s clothing and textile industry has gradually moved away from the past single processing model and ushered in new breakthroughs.
According to Interface News, a Chinese clothing supplier pointed out that usually basic models of fast fashion clothing can be transferred to Vietnam, India and other places for production in large quantities, but considering Due to the professional and technical level of Vietnamese and other manufacturers, international giants still keep some of their garments that require fine processing in China. At the same time, China’s clothing manufacturing is still accelerating the completion of industrial upgrading and transformation.
Relevant sources from Shanghai Tai Dewei Company revealed that in the future, China’s investment will focus on robotics, and will improve the supply chain efficiency of China’s clothing manufacturing through automation-related technologies. Material traceability and quality control. It is reported that as China’s e-commerce market continues to develop, Tadashi Yanai, the founder of Japanese clothing giant Uniqlo, has repeatedly praised Uniqlo’s business model in China and believes that learning from the Chinese model can save the business decline in Japan and other regions. It is not difficult to imagine that with China’s rapid industrial upgrading, the international apparel manufacturing market will continue to shine in the future.
