More than 30% of textile, garment operations on hold due to COVID-19

The proportion of textile and garment factories that have closed due to the COVID-19 pandemic has reached 30-35 per cent according to the Vietnam Textile and Apparel Association (Vitas).

More than 30% of textile, garment operations on hold due to COVID-19
Many textile and garment factories are having to halt operations due to COVID-19. — VNA/VNS Photo Pham Kien

“I think that a number of these factories will even have to close for a long time, especially small and medium enterprises,” said Vu Duc Giang, chairman of Vitas at an online meeting on Monday.

Businesses, he said, do not have enough funds to pay for three-on-site working arrangements to support employees to return to work. This is a huge challenge to stabilising Vietnamese textile and garment enterprises.

In addition, the vaccination rate of Vietnam's textile and garment industry was still very low, he went on.

The vaccination rate was particularly low in key production areas in the southwestern and southeastern provinces.

Vitas was one of four associations that sent an official dispatch to the Prime Minister, proposing speeding up vaccinations or supporting businesses to buy vaccines to give to workers of export industries. 

The total export turnover of the provinces in the central region accounted for 62 per cent of the total export turnover of the industry. 

Giang notes that this month would be a particularly difficult period, especially for southern businesses due to social distancing requirements.

 

Up to 90 per cent of supply chains in the sector are currently broken.

Vitas data showed that the export value of the textile and garment industry reached US$18.7 billion in the first six months of the year, while the target for the whole year is $39 billion.

"In the last five months of the year, businesses could only start exporting again if the pandemic situation is completely under control. In the most optimistic scenario, we can only achieve about $32-33 billion," he said.

Due to the inability to ensure the production situation as planned, the disruption of the supply chain had also put huge pressure on many textile and garment enterprises.

With the pressure of a seasonal manufacturing industry in which timeliness is imperative, failing to deliver on time would cause customers to cancel orders which would impact the industry in the medium term.

One concern is the number of workers leaving HCM City in a hurry to return to their hometowns. The Vitas representative said that their ability to return when the localities open again is also a huge challenge. This could foreshadow a very serious labour shortage in the immediate future.

Source: Vietnam News

Textile and garment makers seek multitude of options

Textile and garment makers seek multitude of options

As the current outbreak of the pandemic remains complicated, textile and garment makers fear lasting impacts on their operations, 

 
 

Other News

.
Hanoi to welcome launch of 26,000 apartment units in 2022: C&W Vietnam
Hanoi to welcome launch of 26,000 apartment units in 2022: C&W Vietnam
BUSINESSicon  12/01/2022 

Around 26,000 apartment units are expected to be launched in Hanoi in 2022, signaling a vibrant outlook for the segment, according to real estate service provider Cushman & Wakefield (C&W) Vietnam.

Vietnamese billionaire sells shares without necessary report
Vietnamese billionaire sells shares without necessary report
BUSINESSicon  11/01/2022 

The State Securities Commission (SSC) has released a notice about a stock transaction without a report from Trinh Van Quyet, President of FLC Group.

Vietnam's tourism revives, starts again from scratch
Vietnam's tourism revives, starts again from scratch
FEATUREicon  12/01/2022 

The market is completely new after Covid-19. All players, small and large, will be at the starting point. Those who have a good start will obtain more market share.

Distressed by Covid-19, wind power developers want FIT to be extended
Distressed by Covid-19, wind power developers want FIT to be extended
FEATUREicon  12/01/2022 

Unable to have commercial operation date (COD) prior to November 1, 2021, many wind power investors have fallen into dilemma.

Telecom providers launch Mobile Money service
Telecom providers launch Mobile Money service
BUSINESSicon  11/01/2022 

Telecommunications isn't the booming industry it once was, thanks to the mobile market becoming saturated in recent years. This shift is forcing telecom providers to look for "new spaces" - one of which is Mobile Money.

Vietnam aims for 8% export growth this year
Vietnam aims for 8% export growth this year
BUSINESSicon  11/01/2022 

Although much of the economy was impacted by the fourth wave of COVID-19 in 2021, Viet Nam’s imports and exports reached a record of nearly US$670 billion, an increase of almost 23 per cent from 2020.

Vietnam coffee industry targets US$6 billion export value in 2030
Vietnam coffee industry targets US$6 billion export value in 2030
BUSINESSicon  11/01/2022 

The Viet Nam Coffee and Cocoa Association has targeted a coffee export turnover of US$5-6 billion in 2030, doubling the export value at present.

Three border crossings to reopen in Quang Ninh
Three border crossings to reopen in Quang Ninh
BUSINESSicon  11/01/2022 

China will resume customs clearance at three border crossings in Quang Ninh Province from January 11, according to the Ministry of Industry and Trade.

Largest-ever support package to strengthen farmers
Largest-ever support package to strengthen farmers
BUSINESSicon  11/01/2022 

The Government has just submitted a support package of VND350 trillion (US$15.43 billion) for socio-economic recovery and development to the National Assembly.

Treasures hidden in forests, bring high profit to farmers
Treasures hidden in forests, bring high profit to farmers
BUSINESSicon  11/01/2022 

Ngoc Linh ginseng lives under the canopy of old forests, with a forest coverage level of 70-80 percent and temperature of below 25oC. Businesses are now joining forces with locals to grow Ngoc Linh ginseng there.

Home-appliance distributors bargain products away, shut down after incurring big losses
Home-appliance distributors bargain products away, shut down after incurring big losses
FEATUREicon  11/01/2022 

Home appliance distributors have had a tough year 2021 because of Covid-19.

Real estate market anxiously awaits new regulations
Real estate market anxiously awaits new regulations
FEATUREicon  10/01/2022 

The National Assembly this morning began discussing the amending of eight laws.

Some hotels manage to survive the pandemic
Some hotels manage to survive the pandemic
FEATUREicon  11/01/2022 

Going digital, using staff for multiple tasks, and opening new businesses, hotels have been struggling to survive the second year of the pandemic.

Tet online sales kick off one month before Tet
Tet online sales kick off one month before Tet
FEATUREicon  10/01/2022 

Everything now can be purchased online, from food for Tet parties to smartphones.

Banks begin to hike deposit interest rates
Banks begin to hike deposit interest rates
BUSINESSicon  11/01/2022 

In October, the average interest rates on bank deposits for six months and 12 months were 4.7 per cent and 5.5 per cent, down half a percentage point from a year earlier, according to Bao Viet Securities Company.

Riding the wave in Vietnam’s real estate market in 2022
Riding the wave in Vietnam’s real estate market in 2022
BUSINESSicon  11/01/2022 

The real estate market has ended a year of profound impacts with some very encouraging news as both domestic and foreign developers are finally speeding up the construction of new projects.

Garment and textiles face reality of fierce global rivalry
Garment and textiles face reality of fierce global rivalry
BUSINESSicon  11/01/2022 

Vietnam’s garment and textile sector has reached the 2021 export target, but is confronted with ever-growing competition from the Asian continent as well as other markets.

Positive indicators light up footwear trade to US
Positive indicators light up footwear trade to US
BUSINESSicon  10/01/2022 

Vietnam is emerging as one of the largest suppliers of footwear and leather accessories to the United States, opening more opportunities for domestic companies to exploit the world’s largest market for these goods.

Goods congestion at border gates needs to be solved before Tet: Deputy PM
Goods congestion at border gates needs to be solved before Tet: Deputy PM
BUSINESSicon  10/01/2022 

Deputy Prime Minister Le Van Thanh has requested ministries, sectors and localities to closely coordinate with Chinese agencies to speed up customs clearance, striving to have no congestion of cargo trucks at border gates before Tet.

HCM City businesses overcome economic 'storm'
HCM City businesses overcome economic 'storm'
BUSINESSicon  10/01/2022 

Many enterprises in HCM City have successfully contributed to the economic recovery and development of the city after the pandemic.

 
 
 
Leave your comment on an article

OR QUICK LOGIN