As the number of cases reaches 339,000 globally, countries are sealing borders to prevent further spreading of nCOVID-19 virus.
Closing of borders by EU for 30 days has adversely affected Vietnam’s garment and textile industry.
Being the two largest exporters of Vietnamese textile products last year, cancellation of orders by the EU and US buyers has put Vietnam garment manufacturing industry under pressure as revenue falls and staff cuts loom
According to Vietnam Customs, US accounted for 45 per cent of the industry’s export value and EU held 13 per cent.
Textile exports to the US rose 5.3 per cent year-on-year to US $ 2.25 billion, while that to the EU rose 0.3 per cent to US $ 570 million during January and February 2020.
The country’s textile industry is already down as the producers struggle to source raw materials from China. Now that China resumes its operations, Vietnam’s finds it difficult to sell the products to US and EU where buyers have stopped ordering.
The buyers find it difficult to sell the products in US and EU right now; therefore, the consequent cancellation of orders takes place. This in return puts pressure on the manufacturers.
Sea shipments in March have been postponed to April and May, and buyers have asked to stop the ongoing production of hundreds of thousands of products.