New Crown Pneumonia Epidemic Forecast Vietnam Textile Industry Lost 11 Mega Shield

The outbreak of the new crown pneumonia is spreading worldwide, resulting in economic shocks and great impact on Vietnam's textile industry. Vietnam Textile Group (Vinatex) held an online meeting with its 22 units in March 25, 2020 to discuss countermeasures.

It is reported that since mid March 2020 Vietnamese textile industry orders have been canceled, resulting in April and May most production lines will be shut down. In particular, the well-known brand foundry has been more popular, and the total production has not yet been resumed, and domestic sales are expected to be affected. On the other hand, China has begun to resume work. Due to the low market demand, there will be a sharp reduction in the price space by at least 20%.

The above market changes will put pressure on the finance and operation of Vietnam's textile industry. Therefore, the Vietnamese textile group believes that if the government fails to put forward good countermeasures, many enterprises will go bankrupt due to insufficient funds and reduced market liquidity by the end of April. The unemployment rate will probably reach 30%. By May, the unemployment rate may further deteriorate to 50%, and Vietnam's total textile industry will be lost by 5. Trillion Vietnamese shield, Vietnam Textile Group forecast to lose 403 billion shield. If the situation continues to deteriorate, Vietnam's textile industry will lose 3 megabytes per month.

Vietnam Textile Group estimated that if the epidemic could end in late May, the global economy will recover from June, and Vietnam's textile industry will lose 11 trillion shield in total, and the group will lose about 1 trillion shield.

The Vietnamese textile industry has made many independent rescue plans, such as strengthening the business opportunities of export antiseptic products, including one-off non-woven protective clothing, antibacterial cloth masks, medical clothing, etc., and coordinating with labor, implementing flexible working mechanism, reducing working hours and shift system.

In addition, the textile industry has also proposed to the government that it can export masks and clothing for epidemic prevention in March 2020, exemption, reduction and grace to pay social security fees, taxes, land rents, etc., or use unemployment insurance funds to support unemployed workers to tide over the difficulties, and extend the grace period for long-term loans due in 2020, short-term debt extension for 11 months, and no reduction of loan quota.