In the dangerous situation of COVID-19 in August, Vietnamese textile and garment enterprises are facing the risk of losing orders. The Vietnamese textile and garment enterprises over 4/5 are forced to reduce production or suspend operations to fight the epidemic. Only 70-80% enterprises are operating in North Vietnam.
Jiading group, located in southern Pingyang Province, has received orders until the end of December, but it is facing higher material prices, delayed delivery, higher logistics costs and other problems. According to the Vietnam newspaper, the company's management committee said that if the epidemic continues, it will not be able to deliver these orders.
Wu Dejiang, chairman of Vietnam textile and Garment Association (vitas), said that it was "extremely difficult" to carry out production in August, especially for companies that want to implement social distance policy in South Vietnam, up to 90% of the external supply chain has been broken.
Chairman Wu said that the pressure of delivery during the epidemic period is a great challenge for textile and garment enterprises. If they fail to deliver on time, customers will cancel their orders, which will affect the production of this year and next year.
Chairman Wu said: if the Vietnamese market is unstable, partners will transfer orders to other countries. Clothing is a seasonal product. Although it is on sale, no one wants to buy Seasonal clothes.
Vietnam's Ministry of industry and trade also pointed out that textile and garment enterprises face the risk that international customers will postpone or cancel orders and shift the production focus to other countries. Even if the epidemic is controlled, it will take a long time to resume business relations.
President Wu mentioned that many workers have left Hu Zhiming to return to their hometown to avoid infection with COVID-19, but even if the epidemic is slowing down in the future, there will be only 60-65% workers returning.
According to the data of Vietnam Bureau of statistics, Vietnam's exports of textile and garment products totaled US $18.6 billion in the first seven months of 2021, an increase of 14.1% over the same period last year.
