TEXTILE SECTOR BRACES FOR $473 MLN COVID-19 SETBACK
Le Tien Truong, CEO of Hanoi-based Vietnam National Textile and Garment Group (Vinatex), said that the figure was calculated based on the assumption that the pandemic is contained in May and the global economy starts recovering in June.
COVID-19 PANDEMIC CHALLENGES GARMENT AND TEXTILE BUSINESSES
According to Phạm Xuân Hồng, Chairman of the HCM City Association of Garment Textile Embroidery and Knitting, customers said they needed to stop receiving goods due to the rapid spread of COVID-19 in the US and EU, prompting governments to declare states of emergency and tighten border controls.
VIETNAM’S GARMENT-TEXTILE EXPECTS BOOM IN 2020
The Fourth Industrial Revolution’s impacts on production mindset and methods are tangible. An example is Duc Quan Investment and Development JSC in the northern province of Thai Binh, which has doubled its yarn output to 17,000 tonnes per year through the application of Big Data in production and management.
APPAREL EXPORTS DOWN, LEATHER FOOTWEAR SHIPMENTS UP
Although the revenue from apparel exports over the period amounted to an estimated US$29.9 billion, up 7.8% year-on-year, the number of orders shipped to foreign countries tumbled, equal to 80% of the figure seen in the same period last year, according to a report by the Ministry of Industry and Trade.
TEXTILE AND GARMENTS LIKELY TO HIT $40B IN EXPORTS THIS YEAR
“After a quiet period, the fibre sector has started to prosper. Customers are showing more interest in it while the price has also recovered. We hope the market will correct itself over the next year and return to the highs seen in 2016-17,” Hiếu said.
TEXTILE-GARMENT SECTOR EXPERIENCES HARDSHIP
The Ministry of Industry and Trade has issued a report, noting that the U.S.-China trade tensions have affected currency exchange rates, resulting in higher prices for goods processed in Vietnam compared with those seen in other countries, such as South Korea and China. Local textile and garment products for export have been negatively affected.
EXPORT EARNINGS FROM COMPUTERS AND ELECTRONICS OUTPACE APPAREL INDUSTRY
As an indication of Vietnam’s entering the ranks of countries with more industrialized economies, Vietnam’s export earnings from computers, electronic products and their spare parts are now ranked second in revenues, with traditional textiles and garments falling behind to third place.
VIETNAM IMPORTS US$6.6 BILLION IN TEXTILE-GARMENT MATERIALS IN H1
Though the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has been in force for a while, Vietnam has not made much use of the free trade agreement and imported US$6.7 billion worth of materials in the first half of the year.
