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Vietnam apparel manufacturing battling Coronavirus

Apparel manufacturing in Vietnam is facing mammoth challenges as the coronavirus outbreak hampers material imports from China – from where 60% of textile materials are sourced.

Vietnam-apparel-manufacturing-battling-Coronavirus
Figure: Many medium to small textile producers will expire of feedstock by the end of this month and may have to close down next month. Courtesy: Collected

“Many medium to small textile producers will expire of feedstock by the end of this month and may have to close down next month,” said Truong Van Cam, Deputy Chairman of Vietnam Textile and Apparel Association (VITAS), in a recent forum.

“These companies, which account for around 90% of the industry, have lessened working hours, with supply orders remaining upset due to the Coronavirus, Truong Van explained.

Many garment factories are running at minimum capacity as staffs are quarantined in Binh Xuyen District of northern Vinh Phuc Province, where a lockdown order to hold the spread of the virus.

On the other hand, Vietnam export to China is also suffering. Vietnam Cotton and Spinning Association (VCOSA) said a record number of producers had informed plunging cotton orders from the country, and are worried about this year’s profits.

A 23.5% fall in Vietnam’s textile exports in January year-on-year, while imports fell 28.5%.

“The industry has never seen such a steep drop,” stressed Truong Van.

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