return icon

Vietnam sees decline in textile orders

With many local textile-garment makers unable to confirm when they can resume operations, many of their foreign business partners are switching orders from Vietnam to other countries.




In April this year, Italian fast-fashion group Teddy began signing contracts to place orders with the HCMC-based MyOne Fashion Company, with their cooperation extending until the end of September 2021. However, while MyOne is ramping up efforts to complete orders that have already been signed, it has not made headway with several orders due to Covid-19 related complications in Vietnam.

Le Van Tam, director of MyOne Company, said, “It is impossible for the firm to complete orders signed this year in a timely manner, let alone securing new orders.”

Other businesses in the textile-garment industry are also facing similar problems.

Pham Van Viet, board chairman of the Viet Thang Jean Company in HCMC, said that the stay-at-home mandate under the prime minister’s Directive 16 has significantly affected the firm’s operations.

During the social distancing period, the firm could arrange accommodation for only one-third of its 3,500 workers who were required to work, eat, and sleep at the firm as per the mandate. The firm’s output declined sharply and the productivity of its remaining workers also decreased due to their concern over the spread of Covid-19.

Many business partners of the Viet Thang Jean Company will only place orders once the firm commits that it will resume normal operations. However, since it is still difficult to determine exactly when this will happen, the firm has yet to sign any deal for new orders.

Commenting on the probable shift of orders from Vietnam to other countries, Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, said that the shift is likely to happen.

According to Giang, 97% of textile-garment makers in the southern localities had to suspend their operations due to the resurgence of the coronavirus, thus making it tough to commit to business partners and consequently, creating concerns among business partners about the disruption of their supply chain.

Some international garment brands have also sought permission to make late payments in 2-3 months, or even six months. This is beyond the original financial plans of local textile and garment firms.

If local textile makers accept the request, they would face obstacles in rotating capital, as the access to long-term loans offered by local banks is currently challenging and risky. If they refuse the request for late payments, these brands would seek new business partners in other countries.

Giang said that the shift of orders to other countries is a temporary move. Once the pandemic is over, Vietnam will still be one of the best destinations for garment brands.

He cited the business performance of the local textile-garment industry, saying that the sector in the first half of this year exported products worth US$18.79 billion, improving 21.27% compared to the same period last year and up 4.23% against the 2019 figure. Of this, the number of textile-garment items shipped to European Union accounted for US$2.263 billion, rising 4.85% versus last year’s figure.

Further, the local workforce has been increasingly upskilled, creating more quality products to meet the requirements of garment brands. Therefore, it is not a big problem when business partners shift orders to other countries, he added.

It is crucial for local textile-garment makers to take measures to retain their employees and ensure they have stable jobs and adequate benefits and allowances, as there will be a number of employees who will seek new job opportunities, resulting in a decline in the number of textile-garment employees returning to work once the pandemic has eased, Giang advised.


Source: SGT

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, 


EuroCham Chairman praises strong and forward-looking government

Vietnam’s recovery has been ensured by strong and forward-looking government support which helped to bring in more high-profile FDI projects

Many firms suspend raising capital from stock market

Many enterprises have either stopped mobilizing capital or changed their capital-raising plans on the stock market amid existing uncertainties and disadvantages.

HCM City runs out of Covid-19 vaccines

HCM City has run out of Covid-19 vaccines over the past 10 days, said Nguyen Hong Tam, the deputy director of the municipal Centre for Disease Control and Prevention.


Chinese police hand over wanted man to Lao Cai authorities

Foreign-invested enterprises face up to procedural barriers

Administrative procedures such as a prolonged timeline for obtaining business licences, as well as overlaps in the legal framework, are continuing to affect the expansion plans of many foreign-invested enterprises in Vietnam. Vietnam among ten attractive destinations to escape Europe’s winter

With its year-round warm tropical climate, breathtakingly beautiful scenery, and exciting culture, Vietnam is gradually becoming an attractive destination for German tourists.


Real estate sector faces debt default risk

Shan Tuyet tea, valuable timber plants named ‘Vietnam Heritage Trees’

More than 1,300 Shan Tuyet tea plants in Ha Giang province and a group of valuable timber trees in Dak Nong province have been recognised as “Vietnam Heritage Trees”.

Fast fashion brands scale up for growth

Surviving and developing in a competitive fast fashion market remains a challenge for many brands, especially for newcomers.

Arguments arise as properties required to be traded on exchange

Controversy has arisen over the Ministry of Construction’s draft of the amended law on real estate trading as it requires real estate products to be traded on an official exchange.

Boeing accelerates cooperation with Vietnamese suppliers

Boeing, the world’s leading aerospace company based in the US, are accelerating cooperation with Vietnamese suppliers and universities to provide a foundation for long-term industrial growth.

Expecting coffee exports to hit a record $4 billion

Vietnam Coffee Cocoa Association (Vicofa) forecasted that if the export price of coffee remained at a high level, as in the first half of the year

Major investors worry as stock market weakens

The stock market boards have been covered with red amid investors’ rising caution. There are few buyers, while selling pressure still exists. Foreign investors’ behavior has affected the market.

Vietnam sees great potential in ASEAN halal market

Despite opportunities available in the ASEAN halal food market, Vietnamese exporters have to date exported only a small amount of halal products to some countries in the region.

Vietnam is becoming a beacon in the region: The Brussels Times

The Brussels Times of Belgium has run an article highlighting that Vietnam is becoming a beacon in the region with the capacity to control inflation and maintain economic growth at a high level despite turbulent international affairs.