Textile orders show signs of moving out of Vietnam

Forecasting the production and export situation of the industry in the second half of 2021, Mr. Vu Duc Giang said that there will be many challenges, including the challenge of 2020, the prolonged first half of 2021 and the long-term harm from A new epidemic is breaking out, and the hot spot is in the southern provinces and cities.

In particular, even though orders have been received until the end of the third quarter, even the end of this year, prices have fallen deeply, businesses are under great pressure to balance production, ensuring jobs for employees with profits. Brands apply increasingly high assessment standards for factories, equipment, fire and explosion safety, labor, including trade unions. In case of non-response, the business will not receive the order.

Brands also ask for late payment 2-3 months, even 6 months. This is outside the original financial arrangement of the business. "The difficulty of businesses is that if they don't accept, there will be no orders, if they accept, it is very difficult to manage cash flow because domestic commercial banks do not accept such long-term loans, the risk is very high." Mr. Giang said.

On the other hand, although orders have increased again, the strength of Vietnam's textile and garment products such as vestons and shirts have not yet recovered. The number of veston orders returning to Vietnam only reached 27%. Since the end of June 2021, many veston factories have had to invest in new equipment and lines to produce other items, including cloth masks. However, in the past 1 month, only businesses that have invested in equipment to produce masks that meet high standards of the medical industry, such as N95 masks are still well produced, and ordinary masks are also few. order gradually.

Especially, at present, 97% of textile enterprises in the South have to close. Only a few businesses have prepared equipment, implemented "3 on the spot" under the direction of the Government and localities, trying to maintain production so that brands can see that Vietnamese textiles and garments are trying to overcome the epidemic, keep order. "We have just received information that, in the face of a great risk due to the increasingly complicated disease situation, some brands have moved orders out of Vietnam, with orders to return to the Chinese market," Mr. Giang informed. .

The epidemic is turning the whole textile industry in Vietnam upside down. If in the short term the epidemic in southern provinces and cities is not better controlled, textile orders continue to move out of Vietnam, the consequences will be very serious. No orders, can't produce, businesses have no revenue, workers have no jobs. Ensuring a safe life for workers will be a great pressure on the economy and society.