Vietnam’s textile and garment industry will experience a decline in exports
Vietnam National Textile and Apparel Group (Vinatex) said the industry’s exports fell by 2.02% to US$8.4 billion in the first quarter of 2020, and warned of the impact of the COVID-19 outbreak. As the pressure continues to intensify, the export situation may become even worse.
Vinatex said that thanks to orders in the last two quarters of 2019, Vietnam’s exports have not been greatly affected in the three months to March.
But in the single month of March, garments and exports began to decline, with a decline of 7.42%.
For the Vietnamese textile and garment industry, especially the garment industry, order cancellations and order delays are very serious. Many businesses witnessed a 20% revenue decline in Q1 2020.
Vinatex said the industry has witnessed an influx of requests for delayed orders from March to May.
No new orders came in until May. Many companies have also turned to mask production in the hope of maintaining workers’ employment, but now the country is reaching saturation.
As far as Vietnam’s textile and garment exports in the first quarter are concerned, exports to the EU fell by 4.9% year-on-year, and exports to China fell by 14%. However, freight volume to the United States fell by 4.9% year-on-year. Growth of 4.49%.
At the same time, in terms of textile and garment imports, cotton fell by 10.52% year-on-year, fiber fell by 0.97%, cloth fell by 2.64%, and textile and leather shoes fell by 33.24%.
With the decrease in raw material imports by as much as 23% in the first quarter, it can be seen that the export volume indicator in the second quarter will decrease by more than 20% in the same period.
Vinatex added: After the epidemic ends and the global economy recovers, Vietnam’s textile and garment industry will experience a decline in exports in 2020. The good result is that our export volume will reach about 35 billion US dollars, but this is a 10% decrease from the previous year. The actual export value that may occur is about US$33.5 billion, assuming that the minimum export value in 2020 may be US$3-31 billion.
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