60% Materials Imported From China? Vietnamese Textile Industry'S 299 Billion 100 Million Export Goal Or Failure

Vietnam was temporarily exposed to 100 thousand medical masks of Chinese buyers at the beginning of this month. Meanwhile, 300 thousand medical masks that had been shipped to China were also "stuck" in Vietnam at Da Nang Airport. Voices indicated that Vietnam had not ruled out the possibility of restricting the export of masks due to the global upgrade. However, the move may also allow the country's mask exporters to miss huge dividends.

Vietnam has a relative advantage as a textile exporter. According to the data from Vietnam Lang Son, in January this year, the region declared a total of 4 million masks worth about US $92 thousand (about 640 thousand yuan) for exports to China. That is to say, in the face of China's huge demand, Vietnamese exporters could have taken the opportunity to expand their exports, but now the plan has failed. More embarrassing is that not only the mask, Vietnam's textile industry is still facing greater problems.

60% materials from China! Vietnamese textile industry materials are in urgent demand, and 299 billion 100 million export goals have failed?

According to the Vietnam textile and Apparel Association (VITAS), February 25th, because the textile industry is highly dependent on China's raw materials, 55-60%'s raw materials are imported from China, especially clothing raw materials, yarns, fabrics and so on, which are mainly imported from China. Due to sudden public health incidents, some factories in China have postponed their reemployment time, so the supply chain of Vietnam's textile and garment industry is serious. Be affected.

The association pointed out that the existing raw materials of Vietnam's local companies are only enough to maintain production until the end of March. If March is still unable to obtain sufficient imports from China and other major markets, many companies will face serious shortage of raw materials in April.

Vietnam's textile and footwear manufacturers are unable to import raw materials from China, and some factories have run out of raw materials, some of which can last for weeks, some of which can last for several months, according to Vietnamese media reports. Vietnam textile and Apparel Association suggests that production enterprises turn to other import sources, but the reality is that besides China, Vietnamese enterprises have a narrow selection of raw materials. At present, the raw material inventory of Vietnamese textile enterprises can only be maintained until the end of the first quarter. Some enterprises began to fear "no rice pot" from the two quarter. Statistics show that in 2019 China accounted for 60% of Vietnam's clothing imports, accounting for 55% of fiber imports.

On the other hand, in order to cope with the shortage of raw materials due to the delay in the resumption of Chinese factories, the Vietnam textile and Apparel Association organized a trade delegation to India to look for raw materials. Gao Guoxing, Vice Minister of Vietnam's Ministry of industry and trade, also suggested that India consider resolving Vietnam's difficulties in textile material sources when meeting with Vice Minister of industry and Commerce of India, Vadavan. But this is only a temporary measure for Vietnam to deal with the delay in the resumption of factories in China. If Vietnam wants to get rid of its dependence on China's raw materials, it will take a long time.

In recent years, due to the low labor cost, Vietnam's textile exports in 2018 exceeded 36 billion US dollars (about 253 billion 400 million yuan), the growth rate reached 16.01%, and became the third largest exporter of textiles and clothing in the world, second only to China and India.

　　 According to statistics from Vietnam Statistics Department, in January this year, Vietnam's imports of textiles to China amounted to 950 million US dollars, down 18.1% from the same period last year, and Vietnam's total textile exports decreased by 21%, to 2 billion 600 million US dollars, of which footwear exports decreased by 9.7% to 1 billion 600 million US dollars.

In January 2020, Vietnam's cotton import volume was 81 thousand tons, a decrease of 20.4% compared to the same period, a decrease of 41.8% over the same period last year. Fiber and yarn imports 73 thousand tons, a decrease of 27.7%, a decrease of 21.6% over the same period last year. In January, Vietnam's yarn export volume was 107 thousand and 900 tons, a decrease of 34.3% compared to the same period, a decrease of 22.2% over the same period last year. Exports of textiles and clothing amounted to $24 billion 700 million in the same month, a decrease of 16.9% compared to the same period, a decrease of 25% over the same period.

Vietnam's textile and clothing exports are mainly affected by the Spring Festival holidays. Meanwhile, the outbreak of China's new crown virus caused the textile industry to postpone the resumption of work in China, and the demand for short-term imports dropped significantly. Based on this, the Vietnamese textile industry generally believes that the country's export target of 42 billion 500 million US dollars (about 299 billion 100 million yuan) will also be difficult to achieve this year.