Vietnam'S Textile, Footwear And Clothing Industry Is Looking For A New Way Out

Vietnam's textile and footwear industry is facing a disadvantageous situation due to the global new crown pneumonia epidemic and the prospect of economic recovery is being tested. Although the first half of the year turned to manufacturing masks and protective clothing to give the industry a chance of survival, but now the supply of such products has exceeded demand, and the industry began to think about new ways to tide over the crisis.

Vietnam's vnexpress reported that TNG trade and Investment Co., Ltd., a foundry, reported that its revenue and net profit fell by 10% and 29% respectively in the first half of this year to 1.84 trillion dong (about 79.3 million US dollars) and 66 billion Vietnamese Dong (about 2.84 million US dollars).

According to the Ministry of industry and trade, Vietnam's clothing production increased by 13.2% in July compared with that in June, but this year, it is still down nearly 5% compared with the same period last year. Textile and footwear exports fell by 21% and 8% respectively. Due to the global oversupply of masks and protective clothing, enterprises including TNG have stopped producing masks and have turned to focus on high-value products, the report said. In addition, another major challenge facing the textile, footwear and clothing industry is that the epidemic has led to a dramatic change in consumer behavior, as many people have suffered wage cuts or unemployment, coupled with a bad outlook for the economy, which has led to a reduction in unnecessary spending on shopping.