Business News

Since the beginning of the fourth outbreak of COVID-19, many garment and textile enterprises have faced difficulties, even the risk of bankruptcy, due to the temporary suspension of production to ensure pandemic prevention and control.

Vietnam overtook Bangladesh as the world’s second largest exporter of ready-made garments (RMG), with a turnover of 29.8 billion USD, according to the World Trade Organisation.

Textile and apparel businesses in South Vietnam are facing critical levels of disruption due to severe social distancing measures to combat the COVID-19 pandemic and are requesting urgent support from the government and other industries to reboot operations.

Thanks to the preferential tariffs under the EU-Vietnam Free Trade Agreement, footwear exports to the bloc’s 27 member countries increased by 19.2 per cent year-on-year in the first quarter of 2021.

According to the Ministry of Industry and Trade, textile and garment orders increased significantly after the Covid-19 pandemic was brought under control in the United States, the European Union and Japan, some of Vietnam’s main importers of textile and garment products.

The government issued Decree No.18/2021/ND-CP on March 11, amending a previous 2016 decree to implement the Law on Export and Import Taxes. Now, products traded on spot are not eligible for import duty exemptions.

The Vietnam Textile & Apparel Association sets an export target of 55 billion USD for the sector for 2025.

VGG attributed the decline to the negative impact of the COVID-19 pandemic around the world, especially in Japan, the US and the EU, the main export market of the corporation. Importers in these countries reduced their orders, leading to a decrease in VGG’s sales.