Vietnam'S Textile And Garment Industry Faces Risks Of Delivery Delay And Loss Of Orders

According to Vietnam's "investment daily" on August 4, Wu Dejiang, chairman of Vietnam textile and Garment Association, said that Vietnam's textile and garment industry is facing severe challenges due to the severe impact of the new crown epidemic. In the southern region where the epidemic is most serious, a large number of textile and garment enterprises have stopped production. After a period of time, many enterprises have been unable to adhere to the "three local" (local production, on-site dining and on-site accommodation) mode. The reason is that the cost of maintaining production is too high, the production efficiency is low, and workers have to be arranged to eat and live. As a result, many factories are forced to stop production. 19 factories of some enterprises were forced to stop production due to their inability to implement the "three in place" policy. At present, only spinning, weaving, printing and dyeing enterprises can maintain the "three in place" mode. The common characteristics of these enterprises are that they use a lot of machinery and equipment, less labor, and it is relatively easy to arrange local accommodation for workers. However, garment manufacturing enterprises have a large amount of labor, and some enterprises have tens of thousands of employees, so it is not feasible to implement the "three local" mode.

Wu Dejiang said that textile and garment enterprises in the southern region are generally facing delivery pressure. Clothing production belongs to the fashion industry. If the goods are not delivered on time, fashion design will lose its fashion value. At present, the demand of clothing import countries such as the United States and Europe is rapidly warming up. The order volume has increased by 16-17% year-on-year, and some varieties have increased by 30%. However, if Vietnamese enterprises fail to deliver goods on time, they will face the risk of breach of contract punishment and dishonesty, and will also lead to the loss of orders. Vietnam accounts for 30-40% of the global export volume of Nike, Adidas and other brands, and is facing the risk of losing its share.

According to the Ministry of industry and trade of Vietnam, a large number of enterprises in southern Vietnam have suspended production, which has slowed down the industrial production of relevant provinces and cities. In July, the industrial production index of Ho Chi Minh City decreased by 19.4%, Long'an province by 14.6%, and kham'ou province by 13.7%. Enterprises in the south are facing serious difficulties. At the same time, the epidemic situation in the northern region has been alleviated. Enterprises in Beijiang and Beining are resuming production, but the highest rate of workers returning is only 80%. Since the outbreak of the fourth wave of the epidemic, many workers have returned home to avoid the epidemic, and it is not possible to return to the factory in the future. Vietnam textile and Clothing Association believes that even if the epidemic situation is controlled and provinces and cities reopen in the future, the return rate of workers is expected to be only 60-65%. When the supply chain breaks down and Vietnam is no longer a stable market, customers will transfer their orders to other countries, which will seriously affect the medium and long-term development of the textile and garment industry.