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Vietnam’s garment export falls 3.5% during Jan-Feb

Vietnam’s garment export has seen a reduction of 3.5 percent year-on-year to US$5.3 million in the first two months of 2020, due to COVID-19 outbreak, according to the Việt Nam National Textile and Garment Group (Vinatex). Whereas Yarn exports fell 16 percent to $512 million and clothes dropped 2.3 percent to $4.2 billion.

Vinatex stated that the supply of input materials for the domestic garment industry had been resumed and would be sufficient for the manufacturing demand in March and April. But the sector is facing the risk of reduced global demand for garment products due to the COVID-19 outbreak. It will affect orders and prices in the coming months. Already many buyers canceled and suspended several work orders for cloth making.

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Figure: Vietnam’s garment export has seen a reduction of 3.5 percent year-on-year to US$5.3 million in the first two months of 2020, due to COVID-19 outbreak

Vinatex Managing Director Cao Hữu Hiếu said this pandemic had caused a lot of difficulty for the domestic textile and garment industry’s the production and business but it would be an opportunity for the textile and garment enterprises to look back themselves and restructure their production and supply chains.

“That would avoid dependence of input material on China as before. The textile industry sources a significant proportion of feedstock from China.”

With the current situation, the group had requested its member companies find new resources of input materials, dealing with the shortage of the materials at present.

Meanwhile, according to Trần Việt, General Director of the Đông Xuân Knitting Company, the company has organized production chains from fabric production to finished products and exported 90 percent of its products to Japan. So that the pandemic had not created a great impact on the company.

This pandemic had even created more opportunities for it to promote knitting fabric supply for other companies and mask production to meet the increasing demand on this product, he highlighted.

Nguyễn Văn Thời, Chairman of TNG Investment and Trading Joint Stock Company, said TNG had enough input materials to ensure production until the second quarter of this year. It was preparing materials for production in the third quarter, reported the Đầu tư (Investment) newspaper.

Thời said this year, many traditional customers of the company had increased their orders for it, including orders of Decathlon (France) up by 29 percent year on year and Spormaster (Russia) up by 73 percent.

Though having the pandemic, in the first two months this year, TNG’s revenue still reached nearly VNĐ560 billion, a year on year increase of 4 percent, he said. The company expects this year to gain revenue growth of 10 percent, or VNĐ4.9 trillion.

(Source: vietnamtimes)

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