27-Jul-2021 Intellasia |
The Saigon Occasions |
With many native textile-garment makers unable to substantiate once they can resume operations, lots of their international enterprise companions are switching orders from Vietnam to different nations.
In April this yr, Italian fast-fashion group Teddy started signing contracts to put orders with the HCM Metropolis-based MyOne Style Firm, with their cooperation extending till the top of September 2021. Nonetheless, whereas MyOne is ramping up efforts to finish orders which have already been signed, it has not made headway with a number of orders as a consequence of Covid-19 associated issues in Vietnam.
Le Van Tam, director of MyOne Firm, mentioned, “It’s unattainable for the agency to finish orders signed this yr in a well timed method, not to mention securing new orders.”
Different companies within the textile-garment trade are additionally going through related issues.
Pham Van Viet, board chair of the Viet Thang Jean Firm in HCM Metropolis, mentioned that the stay-at-home mandate underneath the prime minister’s Directive 16 has considerably affected the agency’s operations.
Throughout the social distancing interval, the agency may organize lodging for under one-third of its 3,500 staff who have been required to work, eat, and sleep on the agency as per the mandate. The agency’s output declined sharply and the productiveness of its remaining staff additionally decreased as a consequence of their concern over the unfold of Covid-19.
Many enterprise companions of the Viet Thang Jean Firm will solely place orders as soon as the agency commits that it’ll resume regular operations. Nonetheless, since it’s nonetheless troublesome to find out precisely when this may occur, the agency has but to signal any deal for brand new orders.
Commenting on the possible shift of orders from Vietnam to different nations, Vu Duc Giang, chair of the Vietnam Textile and Attire Affiliation, mentioned that the shift is prone to occur.
In accordance with Giang, 97 p.c of textile-garment makers within the southern localities needed to droop their operations because of the resurgence of the coronavirus, thus making it robust to decide to enterprise companions and consequently, creating issues amongst enterprise companions in regards to the disruption of their provide chain.
Some worldwide garment manufacturers have additionally sought permission to make late funds in 2-3 months, and even six months. That is past the unique monetary plans of native textile and garment companies.
If native textile makers settle for the request, they might face obstacles in rotating capital, because the entry to long-term loans supplied by native banks is at the moment difficult and dangerous. In the event that they refuse the request for late funds, these manufacturers would search new enterprise companions in different nations.
Giang mentioned that the shift of orders to different nations is a brief transfer. As soon as the pandemic is over, Vietnam will nonetheless be top-of-the-line locations for garment manufacturers.
He cited the enterprise efficiency of the native textile-garment trade, saying that the sector within the first half of this yr exported merchandise value $18.79 billion, enhancing 21.27 p.c in comparison with the identical interval final yr and up 4.23 p.c in opposition to the 2019 determine. Of this, the variety of textile-garment gadgets shipped to European Union accounted for $2.263 billion, rising 4.85 p.c versus final yr’s determine.
Additional, the native workforce has been more and more upskilled, creating extra high quality merchandise to fulfill the necessities of garment manufacturers. Subsequently, it’s not an enormous downside when enterprise companions shift orders to different nations, he added.
It’s essential for native textile-garment makers to take measures to retain their staff and guarantee they’ve secure jobs and sufficient advantages and allowances, as there will probably be various staff who will search new job alternatives, leading to a decline within the variety of textile-garment staff returning to work as soon as the pandemic has eased, Giang suggested.
Class: Enterprise, Vietnam
Article supply: https://www.intellasia.internet/vietnam-sees-decline-in-textile-orders-938291