Every business in every nation is today affected by the deadly pandemic and Vietnam’s apparel and textile sector too has had to bear the brunt.
The industry saw a fall of 10 per cent year-on-year (Y-o-Y) in the first 4 months of year with the numbers being US $ 10.63 billion.
And it doesn’t end here! The Vietnam Textile and Apparel Association (VITAS) reportedly said that owing to lack of orders, the export figures could go down further in the coming months.
April 2020 had seen the industry witnessed a month-on-month drop of 20 per cent to clock US $ 2.3 billion. Corroborating on the same, Truong Van Cam, Deputy Chairman, VITAS, averred that the number could go down further because of cancellation of export orders. Also, several orders have been delayed.
It’s not good for domestic sector either! Vietnam National Textile and Garment Group, better known as VINATEX, said that the local apparel and textile sector could end up losing as much as 50 per cent orders.
VINATEX also added that recovery of supply amidst falling demand could also lead to 20 per cent reduction in prices globally.
Le Tien Truong, General Director, VINATEX, said that Vietnam’s apparel exports in 2020 may fall by 20 per cent from last year.
He suggested firms to look out for small orders with high-quality requirements. Besides, he also said that apparel and textile firms should source raw materials from nations that were part of Vietnam-EU FTA to get tax and other benefits.