More Than 30% Of Vietnam'S Textile Enterprises Or Close Down, Textile And Clothing Industry Faces Risks

 

 

So far, the cumulative number of confirmed cases in Vietnam has exceeded 270000, with 5744 deaths.

 

According to the statistics of Vietnam garment textile association (vitas), 30 to 35% of textile manufacturers are afraid to close down due to the epidemic.

 

Nearly a month after the closure of Vietnam's cities, about 300 factories have been infected in factories, which has also brought more factories into suspension. Although the Vietnamese government offered the "three local" policy, it was actually a high-cost and high-risk gamble, which made most Taiwanese businessmen prefer to stop work. Seeing that they will miss the business opportunities of European and American recovery, the industry can only hope for Shan Xing to sigh. In particular, Ho Chi Minh City, the hardest hit area, is also an important producer of sports functional goods, including Baocheng, the world's largest shoe maker, and Wang Ruhong, a Taiwan textile company. This year, the companies were full of orders from Europe and the United States to restore the Soviet Union, but now they have stopped because of a city order.

 

Hong Zhenhai, the chairman of Ruhong, said in the FA Shuo meeting that "the five factories in Vietnam together will cost US $200000 to US $300000 more per month just for quick screening. Moreover, such a high cost can not replace full capacity, only moderate maintenance of production. "

 

More than 3700 enterprises in Vietnam have tried three local trials, and 285 of them have had in-house infection. Therefore, most Taiwanese would rather stop work than resume work at high cost and high risk.

 

Hong Zhenhai pointed out that after the closure of the city for more than a month, many small factories have been unable to cope with the situation, and even Ru Hong has begun to negotiate with customers and may need to transfer some orders.

 

Domestic textile enterprises face opportunities and challenges

 

Recently, there is a lively voice in the international community that with the surge of confirmed cases in Vietnam and other Southeast Asia, the manufacturing industry may return to China again. Some phenomena are reflected in trade, and there is also the fact that the manufacturing industry has returned. According to a recent survey conducted by the Ministry of Commerce, about 40% of foreign trade enterprises signed new export orders, which showed a year-on-year increase. It should be said that foreign demand has improved and enterprises' competitiveness has been enhanced. For small and medium-sized enterprises, overseas order backflow really ushers in unprecedented opportunities, but also brings a lot of challenges.

 

At present, China's foreign trade enterprises are facing four major difficulties: first, the international shipping efficiency is low and the price is high; Second, the fluctuation of RMB exchange rate has increased, and enterprises have "dare not take orders and export is not profitable"; Third, the price of raw materials has risen to raise the cost of enterprises; Fourth, it is difficult and expensive to recruit workers in some areas.

 

At present, although downstream weaving enterprises have received backflow orders, only a few of them have small orders, which has little impact on the whole weaving Market. In addition, the epidemic situation in many overseas countries is still rebounding sharply. If it rebounds to a certain extent, the whole external demand will shrink, and even affect some basic rigid demand.