Vietnam regards textile exports as an important economic pillar, but due to supply chain disruptions, shortage of labor and soaring freight rates, industry insiders warned that Vietnamese apparel exporters may experience a turmoil in the second half of the year, which will bring variables to the export performance of textiles and garments.
The Vietnamese media "VnExpress" reported that according to the Vietnamese brokerage VnDirect, due to the severe COVID-19 epidemic in South Vietnam, many regions have implemented strict epidemic prevention regulations, including the implementation of the ban on the foot of the city from the economic center of Ho Chi Minh City on the 23rd. Many textile and garment manufacturers are facing There is a serious shortage of raw materials and labor.
The Vietnam Textile and Apparel Association (VITAS) stated that 30%-50% of small and medium-sized textile and garment factories in the area were forced to temporarily suspend operations because they could not cooperate with the implementation of the "three-in-place principle." Under this circumstance, many customers have transferred their orders to other countries, which is a big blow to Vietnam's garment and textile industries.
At present, the Vietnamese government implements the "three-site principle" for the greater Ho Chi Minh area (including Ho Chi Minh City, Dong Nai Province, Long An Province, etc.), that is, the factory must arrange for employees to "produce on site, eat on site, and rest on site." Maintain production line operation.
VITAS Vice Chairman Truong Van Cam warned that if the epidemic cannot be controlled as soon as possible, Vietnamese clothing and textiles may not be able to achieve the annual export target of 39 billion U.S. dollars, and may eventually reach only 33 to 34 billion U.S. dollars.
At the same time, logistics costs, which account for approximately 9% of the production costs of garments and textiles in Vietnam, have also increased sharply. According to VnDirect, in the first half of this year, container rents have tripled.
The report pointed out that many textile and garment companies ship materials to North Vietnam to keep production and delivery uninterrupted, but they must bear high transportation costs. Vu Duc Giang, chairman of VITAS, said that the most feasible solution now is to vaccinate workers in textile and garment factories in the industrial park as soon as possible.
VITAS statistics show that from January to July this year, Vietnam’s exports of garments and textiles totaled nearly 23 billion U.S. dollars, a sharp increase of more than 50% over the same period last year, surpassing Bangladesh in one fell swoop, becoming the second largest garment and textile exports after China. country.
https://technews.tw/2021/08/24/vietnam-textile-exports-may-be-difficult-to-meet-standards/
