Vietnam’s textile and garment industry may find it tough to meet its export target of USD 39 billion this year due to the impact of the pandemic. A report by the Vietnam National Textile and Garment Group (Vinatex) said that since June 2021, when the pandemic broke out in southern localities, garment firms have been facing numerous difficulties in production.

In just a month, over 40,000 workers, mainly in the southern region, were laid off. Textile enterprises have also faced risks related to contracts with their clients, according to a report in a Vietnamese newspaper.

 

In the first six months of this year, the textile and garment export value hit USD 15.2 billion, up by 15 percent year-on-year. However, Vinatex chairman Le Tien Truong said the achievements in the first half could be completely lost if creative solutions in production and business are not drastically implemented.

 

He said that production disruptions can seriously affect supply chains and the lives of workers.

 

Secretary General of the Vietnam Textile and Apparel Association (VITAS) Hoang Ngoc Anh said social distancing regulations will negatively affect business results of textile companies and the rate of factories suspending operations has reached 35 percent.

 

VITAS said the export turnover of the sector is predicted to reach USD 32-33 billion this year, equivalent to 84 percent the plan set, if the pandemic is under control in late August.

 

Textile enterprises are currently receiving many orders from US and the European Union, it added.

 

Source: fibre2fashion.com