US $ 473 million loss! That’s what Vietnam’s textile industry may have to bear if at all the pandemic is controlled in May and everything comes back to normalcy in June.
While confirming the same, Le Tien Truong, CEO, Vietnam National Textile and Garment Group (VINATEX), said that the estimate factored in contract cancellations since the middle of this month.
The CEO was in a meeting with 22 textile firms. He also said that the bigger the firm, the higher is the cancelled contract ratio.
Conforming to the same, Than Duc Viet, CEO, Garco 10, shared that a buyer in US has suspending the making of thousands of products. Notably, 40,000 shirts manufactured by Garco 10 were not taken by a buyer from South Korea, which was in addition to the buyer cancelling April orders.
Similarly, Hoa Tho Textile and Garment JSC too, reportedly, saw 500,000 of its products either cancelled or delayed.
In addition to huge revenue loss, the cancelled orders, industry experts fear, could lead to unemployment as well. Le Tien Truong said that that there could be jobs cuts of nearly 50 per cent, which is huge.
It is worth mentioning here that the Vietnam Textile and Apparel Association (VITAS) had lately asked the Government to help unemployed textile workers by offering them 50 per cent basic salary.