Textile News, Apparel News, RMG News, Fashion Trends
Trade & Business

Vietnam seeing plunge in apparel exports and job cuts

In this global COVID-19 pandemic, Vietnam is witnessing a plunge in apparel exports. On top of it with global buyers canceling most orders, Vietnam’s textile and garment sector could see more job losses in the second half of the year.

Earlier Vietnam National Textile and Garment Group (Vinatex) has revealed that the country’s garment and textile industry may lose up to VND 11 trillion if export orders continue to be stopped, delayed and cancelled.

Figure: Vietnam textile-garment sector to lose VND11 trillion export orders. Courtesy: Nguyen Thanh

Garment production downed 4.7 percent with the industry having difficulties sourcing raw materials and rapidly losing export orders to the COVID-19 pandemic.

Many export orders were canceled or delayed in May and June. In May, up to 50 percent of orders were canceled or postponed, and global prices fell 20 percent as a result of the plunging demand, it added.

Vietnam Textile and Apparel Association data said 80 percent of businesses in the apparel industry cut personnel in April and May, and more cuts are anticipated in the third quarter of the current FY.

Le Tien Truong, CEO of the Vietnam National Textile and Garment Group, said the company’s incomes and profit have fallen by 50%.

The company is making efforts to maintain as many of its workers as possible, but if the current environment continues for more than six months, cuts are likely, he said.

Most companies have turned their focus from clothes to face masks to meet the rising demand globally. Vietnam exported 557 million masks in the first six months, with the U.S., Germany, Singapore and South Korea being the main markets, customs figures show.

But insiders said mask exports would not make up for the lack of garment orders.

The expected loss of the apparel industry will be above VND 5 trillion if 30% of workers are unemployed in April and 50% of workers are unemployed in May. If the circumstance lasts longer, the industry will dissipate up to VND 3 trillion every month,

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

Related posts

H&M, M&S, PVH, Inditex, KIABI and Target confirm to receive the ready goods

Textile Today

Post COVID-19 strategy: Needs to bridge between global and domestic demand for textile products

Textile Today

Jeanologia introduces Sanibox to remove coronavirus from garments

Textile Today

Latest Publications

View All