60% Materials Imported From China? Vietnam'S Textile Industry Is Facing Difficulties, 299 Billion 100 Million Export Targets 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.

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.

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. It is also based on this trend that Vietnam has set a 10 year development goal: as of 2030, Vietnam's textile exports will reach 850-900 billion US dollars, and 25-30 Vietnamese brands will be built and developed.

However, this public health incident has seriously affected Vietnam's textile industry and at least 10 industries. According to statistics from Vietnam Statistics Department, in January this year, Vietnam's imports of fabrics from China amounted to only 950 million US dollars, down 18.1% from the same period last year, and Vietnam's total textile exports dropped by 21%, only 2 billion 600 million US dollars (about 18 billion 300 million yuan). 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.

Import 17 billion API every year from China. Today, India is short of raw materials and has a shortage of raw materials.

Like Vietnam's textile industry, India medicine is also facing a predicament of shortage of raw materials. According to the India times February 18th, many pharmaceutical companies in India worry about being forced to stop production due to insufficient stock of API due to the resumption of time for the production of Chinese api manufacturers. It is reported that the stock of raw materials in the pharmaceutical industry in India is only enough to support 2 to 3 months, which is only a relatively optimistic situation for large pharmaceutical companies. Some small and medium-sized pharmaceutical enterprises may only keep stocks for 20 days to 25 days.

In fact, India, which has the reputation of "world pharmacy", relies heavily on the Chinese market for its drug production. According to statistics from India, the country imports about 174 billion rupees (about 17 billion yuan) of raw material annually from China, accounting for about 43% of the total import of its raw materials, and the dependence on many key antibiotics is even close to 100%.

In addition to the urgent stock of raw materials, India medical supplies seem to be in short supply. It is reported that due to the large number of domestic masks purchased, the country mask has also been caught in a tight supply situation. In order to ensure domestic demand, India also announced the export of medical devices such as masks and protective clothing at the end of last month, which has also aroused great concern in the market. But at present, India has lifted the export of two kinds of medical materials, such as masks and gloves.

It is not difficult to see that, based on China's important position in the global value chain, the economic and trade links between neighboring countries and the Chinese market are very close. This also highlights the importance of cooperation with China in this huge market, especially at the present time of sudden public health events, and once the economies around the border choose restrictive measures, resulting in the loss of bilateral economic and trade relations, the ultimate fear is. Fear or your own economy.