Vietnam'S Textile Orders Are Expected To Reduce By 70%. Anti-Dumping Investigation On Chinese Textile Raw Materials

In recent years, as Vietnam's manufacturing reputation has grown louder in the world, more and more clothing giants have chosen to set up production lines in Vietnam. However, due to the worldwide spread of public health emergencies, Vietnam's garment manufacturing industry is also affected by a chain reaction. According to the Nikkei Asia review released on April 19th, Vietnam's relevant department data show that the volume of Vietnamese textile and footwear orders in 2020 4-5 is expected to drop by about 70%.

According to reports, Vietnam's industry and Trade Department predicts that even if the epidemic trend can be controlled at the end of May, Vietnam's textile industry will lose 1 trillion dong dong (about 300 million yuan) this year, about 2 times of Vietnam's total textile industry's net profit of 510 billion Vietnamese Dong in 2019. It is reported that Vietnam's textile industry is so pessimistic, due to the impact of the epidemic, European and American clothing giants have been suspended business, Vietnamese clothing suppliers have not yet received new orders. Vietnam predicted that exports to the EU would drop by 8% in the first, second quarter of this year.

It is worth mentioning that, in the face of a major test for the textile industry, Vietnam has turned to anti-dumping investigations on China's textile raw materials. According to Vietnamese media reports, in April 6th, Vietnamese local authorities decided to launch anti-dumping investigations on textile raw materials, some polyester long fibers (also called filament yarns) from China, India, Indonesia and Malaysia. It is reported that the survey was launched by the leading local textile industry in Vietnam, hoping to increase its own market competitive advantage through this move.

Data show that Vietnam's textile industry 55-60% raw materials are supplied by China, mainly from China's clothing raw materials, yarn, cloth and other related materials. However, although many garment giants choose to arrange production lines in Vietnam, but in the years of development, China's clothing and textile industry has gradually got rid of the previous single processing mode, ushered in a new breakthrough.

According to the interface news, a Chinese clothing supplier pointed out that the basic fashion of fast fashion clothes can be transferred to Vietnam and India in large quantities. But considering the professional and technical standards of manufacturers such as Vietnam, the international giants still require some fine processing garments to stay in China. At the same time, China's garment manufacturing is accelerating the upgrading of the industry.

According to people in Shanghai, China will focus on robotics in the future. It will enhance the supply chain efficiency, material traceability and quality control of China's garment manufacturing through automation related technologies. It is reported that with the continuous development of China's electricity supplier market, the Japanese clothing giant UNIQLO founder Liu Jing has repeatedly praised UNIQLO's business model in China, and that the use of the Chinese model can save Japan and other regional business decline. It is not hard to imagine that in China's rapid promotion of industrial upgrading, the international garment manufacturing market will continue to shine in the future.