Vietnam'S Textile Industry Is In Trouble. Overseas Orders Have Been Cut By 70%, And More Companies Are Going To Take 50000 Workers On Leave.

According to statistics from Johns Hopkins university website, as of 15 hours in Beijing on April 20th, 269 cases were confirmed in Vietnam, with zero deaths. However, although Vietnam's epidemic control is relatively good, due to the spread of foreign epidemic situation, Vietnam's orders this year have been greatly reduced, and some export industries in Vietnam will also be greatly affected.

Vietnam's textile industry will face a sudden loss of orders, which may cause disastrous losses to many garment manufacturers. Vietnam's manufacturers are taking measures to control costs in the cold winter. Vinatex, a garment manufacturer in Vietnam, has more than 200 factories, with up to 100 thousand workers in its group, but orders from abroad are decreasing. The company is planning to leave at most 50000 workers.

Vietnam's Ministry of industry and trade data showed that in April and May, Vietnam's textile and footwear orders fell by about 70% year-on-year. Even with the global epidemic eased at the end of May, Vinatex will still lose 1 trillion dong dong (about 42 million 400 thousand US dollars), which is two times of its 510 billion Vietnamese shield net profit in 2019.

"According to the current situation, there will be 30% to 50% jobs disappearing by May," said Vinatex's chief executive. "It is worth mentioning that Vietnam's textile industry has also been greatly affected by the supply of raw materials. Vietnam's manufacturing industry seems to be a bit fragile under the epidemic.

Data show that Vietnam's textile industry is an important part of the country's export market, accounting for about 10% of the total export value in 2019. If the textile industry is affected, then Vietnam's export market will not be very good. Vietnam's export figures in the first quarter reflect this very well.

Vietnam's export activities are facing numerous difficulties, according to Yue Tong news agency. According to statistics, in the first quarter of 2020, Vietnam's total exports amounted to US $59 billion 80 million, an increase of 0.55% over the same period last year, with an import volume of US $56 billion 260 million, down 1.9% from the same period last year, and achieved a trade surplus of US $2 billion 800 million.

You know, in the first two months of the first quarter, the epidemic in the United States and Europe has not yet spread, and Vietnam's exports can still be normal. However, in a month's export downturn, Vietnam's exports have almost failed to grow in the first quarter. This shows that if the orders decline again in the second quarter, the probability of Vietnam's exports will shrink significantly.

According to Pei Zhongxiu, deputy director of the Department of trade and services statistics of the General Administration of statistics, most export orders in the US and European markets have been suspended or cancelled. If the epidemic situation does not improve in the second quarter, Vietnam's export activities will be strongly attacked. Because apart from China, the United States and Europe are one of Vietnam's largest export markets, especially for textile, clothing, leather shoes, aquatic products and other industries.

Vietnam, which is extremely dependent on overseas orders, wants to find other alternative markets in the near future. It is no easy task to find other alternative markets. It is difficult to make up for the loss of exports in the two markets of the United States and Europe. In particular, Vietnam's subsequent orders and export activities will depend on the epidemic situation in these two areas.

Today, the most serious areas are the United States and Europe, and the US confirmed cases have exceeded 750 thousand in Beijing time at 5 in April 20th. Therefore, we can predict that in April and May this year, the orders of the US and European customers will drop sharply, and the orders from June are still undetermined, and there is no expectation of a faster recovery.