Textile is Vietnam's third largest export product after smartphones and electronics, but it relies heavily on raw materials and accessories provided by China to operate. New crown disease
Since the outbreak of the drug epidemic, the supply chain of the Vietnamese textile and apparel industry has been seriously affected. From the second quarter of this year, the Vietnamese textile industry will face a serious shortage of raw materials. Yue
Vietnam Textile and Apparel Association (VITAS) Chairman Wu Dejiang said that Vietnam ’s local companies currently only have enough raw materials to maintain production until the end of March.
Textiles are Vietnam's third largest export commodity after smartphones and electronics, but it relies heavily on raw materials and accessories provided by China to operate. Vietnam's textile and apparel industry has a tight supply chain since the new crown virus outbreak
Affected severely, starting from the second quarter of this year, the Vietnamese textile industry will face a serious shortage of raw materials.
Vietnam Textile and Apparel Association (VITAS) Chairman Wu Dejiang said that Vietnam ’s local companies currently only have enough raw materials to maintain production until the end of March.
The company will face a serious shortage of raw materials from April.
Wu Dejiang said that 55 to 60% of Vietnam ’s textile industry supplies raw materials and accessories from China, especially clothing raw materials, yarns, and fabrics are mainly imported from China. "At this time, it is unclear what the new crown epidemic has for Vietnam
The extent of the impact of textile production, but we expect the output in the first quarter will be the same as last year. "
On the other hand, in order to cope with the shortage of raw and auxiliary materials caused by the delay in the resumption of work at Chinese factories, VITAS organized a business delegation to India to seek raw and auxiliary materials. Gao Guoxing, Deputy Minister of Industry and Trade of Vietnam
Seeing India's Deputy Minister of Industry and Commerce Vadawansi, he also suggested that India consider resolving Vietnam's difficulties regarding the source of textile materials. But this is only a temporary measure for Vietnam to respond to the delay in resuming work at Chinese factories.
It will take a long time to get rid of dependence on China's raw materials.
In recent years, due to Vietnam ’s low labor costs, the textile industry ’s export volume in 2018 reached more than 36 billion US dollars, a growth rate of 16.01%, making it the world ’s third largest textile and apparel exporter, behind China and India. And this number
In 2015, 2016 and 2017, they were 12.1%, 4.07% and 10.2%, respectively. According to the development goals of the Vietnamese textile industry for the next 10 years proposed by VITAS, by 2030, the export value of the Vietnamese textile industry will reach 850
-90 billion US dollars, and build and develop 25-30 Vietnamese brands.
However, in 2019, due to the impact of the US-China trade friction, Vietnam's textile and apparel export value was only 39 billion U.S. dollars, which did not achieve the target of 40 billion U.S. dollars that year. At the beginning of 2020, Vietnam's textile and apparel exports.
It fell sharply, only US $ 2.6 billion, down 21% year-on-year. It is expected that the industry's target of 420 billion to 42.5 billion US dollars in exports in 2020 will also be difficult to achieve.
