return icon

Mounting difficulties may lead half of Vietnam textile-garment firms to bankruptcy

Some importers from US and EU, major markets for Vietnam’s textile and garment industry, have stopped orders within three to four weeks on Covid-19 pandemic.

Vietnam textile-garment firms are facing mounting difficulties from shortage of input materials to lower demand from some export markets, which could cause half of the number of enterprises in the industry to go bankrupt.

 Illustrative photo. 



General Director Than Duc Viet of Vietnam’s leading textile manufacturer May 10 said the US market makes up 40 – 45% of the company’s exports, followed by the EU with 33 – 40%.

However, as a number of importers from the US and EU have stopped orders of Vietnam’s textile and garment products from three to four weeks due to the Covid-19 pandemic, the company is facing severe consequences, not to mention the current issue of lacking input materials for production.

In addition to supporting policies such as lowering of interest rates and rescheduling of debt payment, Viet suggested the government subsidize parts of workers’ salaries for companies operating in labor-intensive industries such as garment and footwear.

Phi Ngoc Trinh, general director of Ho Guom Garment Company, said many orders have been canceled, while some are facing delay in delivery due to export difficulties.

Trinh said the company is still looking for solutions at the moment. “Major export markets for Vietnam’s textile and garment products are struggling with the Covid-19 pandemic, leading to a plunge in demand,” Trinh added.

Echoing Trinh’s view, Vice General Director Nguyen Dinh Lap of Truong Phuc Hung Yen Company said a sudden disruption of export to the US and EU markets put local enterprises in a difficult situation.

Lap added the company is scaling down operations until the pandemic is over, but it still pays 70% of normal salaries for employees. If the Covid-19 pandemic persists for a longer period, enterprises may have to stop operation, or even face bankruptcy.

Vice President of Vietnam Textile and Apparel Association (VITAS) Truong Van Cam said enterprises are trying to keep their businesses running at the moment, but without substantial support from the government, it is hard for them to survive through this difficult period. Hanoitimes

Ngoc Mai - Khac Kien

EU, US yet to limit garment imports from Vietnam due to COVID-19

EU, US yet to limit garment imports from Vietnam due to COVID-19

Minister of Industry and Trade Tran Tuan Anh said on March 20 that EU and US authorities have yet to limit the import of garment products from Vietnam.

US has no plan to suspend import of Vietnamese garment-textiles: ambassador

US has no plan to suspend import of Vietnamese garment-textiles: ambassador

The US Government has no plan to suspend the import of Vietnamese garments-textiles, said Vietnamese Ambassador to the US Ha Kim Ngoc.


Only in Vietnam: Shrimp-chip straws, dragon-fruit noodles

VietNamNet sums up the “odd news” in Vietnam last week.

Vietnam in need of more village-based midwives

Vietnam is in need of village-based midwives as the country has more than 7,000 remote and disadvantaged villages where women do not regularly get antenatal care at medical facilities.

Fuel supply estimated to surge 10-15% in 2023

The Ministry of Industry and Trade has drawn up two scenarios for the minimum fuel supply in 2023, requiring key fuel enterprises to increase the overall figure by 10-15% in 2023, according to the local media.

Da Nang to hire more IT staff to meet digital transformation goals

In the 2022-2025 period, Da Nang needs at least 7,500 more information technology (IT) workers a year and in the 2026-2030 period, the figure is 8,000.

Ho Chi Minh City looks to cash in on new travel trends

Ho Chi Minh City expects to fully exploit bleisure travel - a novel type of tourism combining business travel with leisure time.

A special English class in Hanoi for the older generation

For the past four years, a special English class has been held in Hai Ba Trung District in Hanoi for students 60 to 90 years old.


Strong economic growth creates platform for M&A market


Hanoi Tourism Ao Dai Festival 2022 opens

Use of e-cigarettes by youth rockets with easy availability at shops

Many students and young people have been hospitalized in a deep coma after using e-cigarettes, which are easy to buy.

How will telecom carriers fare in a highly competitive market?

The traditional telecom market is getting saturated and facing upheavals, including a drop in revenue from traditional calls and SMS, a tighter management policy and changes in technology.

Number of international visitors to Vietnam sets 'record' after pandemic

Vietnam welcomed 2.95 million foreign visitors in January-November 2022, 21.1 times up year on year, but still down 81.9% compared with pre-pandemic levels in 2019.

Su-30MK2, Mi helicopters rehearse in Hanoi

On December 2, Su-30MK2 fighters performed in a rehearsal to prepare for the upcoming Vietnam International Defense Exhibition 2022.

Vietnam sends condolences over passing of former Chinese leader Jiang Zemin

Vietnamese leaders on December 2 cabled messages of condolences to Chinese leaders over the death of former General Secretary of the Communist Party of China (CPC) Central Committee and former President of China Jiang Zemin.

Ministry proposes canceling funding plans over disbursement delays

Disbursements of public funds sourced from foreign loans in the year through November had moved at a snail’s pace, reaching only slightly more than 25% of the full-year plan.

Hanoi to pilot bike rental service in six urban districts

Hanoi has approved a year-long pilot bike rental service programme in Hoan Kiem, Tay Ho, Dong Da, Ba Dinh, Hai Ba Trung, and Thanh Xuan districts.