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Vietnam’s textile and garment have received abundant orders while worrying about fighting the epidemic

Vietnam’s textile and garment have received abundant orders while worrying about fighting the epidemic

Most textile and garment enterprises “closed” their orders by the end of the third quarter, even the fourth quarter, but faced the risk of “disruption of the plan” because of the fourth wave of the epidemic.
According to a report of the Ministry of Industry and Trade, many domestic textile and garment enterprises have had orders by the end of the third quarter and the whole year. This fact is in contrast to a year before the outbreak of Covid-19 began, textile businesses only had weekly orders.
Textile and garment orders “flowed” a lot, as explained by the Ministry of Industry and Trade, due to the demand for consumer goods (clothing, shoes…) of consumers in the main export markets, the US. , EU, Japan … increased markedly when the epidemic was controlled, the economy recovered and the blockade order was gradually lifted.
The textile production index in May increased by 2.2% compared to the previous month and increased by nearly 10% over the same period in 2020; apparel production increased by 2.1% and 12.9%, respectively. In 5 months, the textile production index increased by 8.1% over the same period; apparel increased by 9.1%; Leather and related products industry grew by 12%…
Export turnover of textiles and garments reached over 12 billion USD, up 15% over the same period. Export of fiber and textile yarn of all kinds increased by more than 60%, curtain fabric and other technical fabric increased by 66.2%.
Workers of Dong Xuan Knitting Company produce cloth masks during the epidemic season. Photo: Cong Nam
Workers of Dong Xuan Knitting Company produce cloth masks during the epidemic season. Photo: Cong Nam
Orders are abundant, but the risk to manufacturing enterprises such as textiles and garments in this 4th wave of the epidemic, according to Vu Duc Giang – Chairman of the Vietnam Textile and Apparel Association (Vitas) is extremely large.
He said that up to now, at least 45 textile and garment enterprises have had to suspend production for more than 2 weeks. Textile and garment owners whose factories have ceased operations are under pressure to both “team” production costs, and at the same time rotate wages to pay workers to retain them, and then compensate customers or change methods. Shipping is more expensive than by air freight to on-time delivery partners.
“A business that only needs to be separated, quarantined and not working for 14-21 days is considered a broken one-year production plan,” said Mr. Vu Duc Giang.
The biggest worry for garment enterprises at the moment, according to Mr. Le Tien Truong – Chairman of Vietnam National Textile and Garment Group (Vinatex), is being isolated and separated even in areas where there are no businesses but there are employees. living, preventing workers from going to the factory to work. If the company does not guarantee the labor to serve production and delivery on time, the enterprise will be fined and canceled the order. Damage to the textile industry at that time amounted to billions of dollars and seriously affected the reputation of Vietnam.
Mr. Nguyen Xuan Duong – Chairman of the Board of Directors of Hung Yen Garment Corporation said that most orders are paid 60 days late, so if the goods cannot be delivered according to the signed contract, the processing money cannot be paid. The cash flow of the business will be “stuck” immediately. Therefore, the thing that worries him the most right now is how to deliver on time to his partner.
“We activated the epidemic prevention plan at the highest level, not neglecting the subjectivity to both produce safely and prevent the epidemic firmly, preventing Covid-19 from entering the factory,” this person shared.
Therefore, in addition to developing epidemic response scenarios with the attitude of “not neglecting subjectivity”, Mr. Le Tien Truong said that at this time, it is time to accelerate vaccination for workers in industrial parks, especially Businesses in some localities that are “epidemic areas” such as Bac Ninh, Bac Giang, Ho Chi Minh City, and Hanoi are the most effective solutions.
Vinatex’s businesses are willing to pay all costs to vaccinate employees. According to calculations, businesses under Vinatex will spend 100-200 billion VND for the cost of self-vaccination.
“We understand that the current amount of vaccines is limited in quantity and needs to be prioritized. However, garment workers are looking forward to being given priority early in this vaccination to ensure that they are not affected by the pandemic. ensure production stability in the coming time”, he emphasized.

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