Apparel / Textiles & Accessories

According to a CCTV report on May 28, industry insiders in the Indian apparel export industry said that due to the blockade measures during the epidemic, the export of the Indian apparel industry has shrunk severely. In 2020, the export of the Indian apparel industry will decrease by 24%.

In the new round of the epidemic, related Indian companies have lost a large number of garment export contracts due to the inability of workers to arrive at their posts.

The epidemic continues to worsen, and many industries in India are hit

△CCTV Finance

In addition, according to statistics from the statistical website "DataWorld", the number of Covid-19 cases in Malaysia is rising rapidly every day, and it surpasses India in a key indicator. The key indicator is: the number of Covid-19 infections per million people per day. This data has surpassed India for 7 consecutive days.

On May 25, the health department of Vietnam announced that there were 447 new cases of new crowns that day, which was the largest increase since 190 new cases in a single day appeared on May 16. It is reported that these cases mainly come from factories.

Southeast Asia is in a hurry

Xinhua News Agency, Hong Kong, May 26. Thailand’s daily number of new crown deaths hit a new high on Wednesday, while the total number of cases in India has exceeded 27 million due to a new round of epidemics in some Asia-Pacific countries.

The Ministry of Public Health of Thailand said that Thailand has reported 41 new deaths, which is the highest number of deaths in a single day since the outbreak of the pandemic. The total number of deaths has increased to 873. The department also reported 2455 new infections, of which 16 were imported from abroad and 2439 were local transmission.

The Federal Ministry of Health stated that the total number of confirmed cases in India reached 27,157,795, with 208,921 new confirmed cases recorded in the past 24 hours. Since Tuesday morning, the country has reported 4,157 deaths, bringing the death toll to 311,388.

Fiji reported 27 cases, bringing the total number of this Pacific island country to 286. According to the Fiji Ministry of Health, 13 new cases are close contacts of previously announced cases.

The Philippine Ministry of Health has reported 5,310 cases, bringing the total number of confirmed cases in the country to 1,193,976. The department said that after another 150 patients died of viral diseases, the death toll rose to 20,169.

The Ministry of Health said in a statement that Cambodia confirms 660 cases every day, bringing the country's total to 26,989. The Ministry of Health said that the new infections include 626 local cases, which are related to the third community transmission of COVID-19 starting on February 20, and 34 cases were imported from abroad.

According to data compiled by Our World in Data, since Sunday, the number of Covid-19 infections per million people in Malaysia per day (7 consecutive days) has exceeded that of India.

The latest statistics show that Malaysia reported 205.1 cases per million people for 7 consecutive days on Tuesday, compared with 150.4 cases per million people in India. Malaysia has a population of approximately 32 million, much less than India’s 1.4 billion.

The country reported 7,478 coronavirus cases on Wednesday, a record high, bringing the cumulative number of infections to more than 533,300. The country’s Ministry of Health said on Tuesday that more than 2,300 people had died in the intensive care unit and 700 were infected.

Supply chain or return to China

Since 2018, the trade friction between China and the United States has escalated. In order to avoid risks, many companies have shifted manufacturing from China, and Vietnam has become a hot new manufacturing industry.

Due to the abundant and cheap labor, the advantages of production factors, and the advantages of trade tariffs, the furniture, electronics, home appliances, toys and other industries that have withdrawn from the Chinese market have flooded into Vietnam. Samsung, Foxconn and other companies have also continued to increase investment in Vietnam to promote Vietnam. Great economic development.

Most countries in Southeast Asia are the most important production bases in the world. So, with the outbreak of the epidemic, will it affect the supply chain? Analysts believe that from the perspective of epidemic prevention and control, short-term epidemics in Vietnam and India may not be so easy to control. Therefore, there may be situations where the supply chain returns to China.

In addition, due to the impact of the epidemic, it is difficult for people to resume their previous living habits for a while, and Vietnam has not completely gotten rid of the epidemic. Therefore, even if the epidemic is alleviated, people mainly buy daily necessities and medical supplies, such as clothing and footwear. The demand for non-essential items such as furniture, furniture, etc. may decrease. These Chinese factories that produce clothing, footwear, and furniture may have to face a decline in market demand.

According to CNBC news, Pinpoint Asset Management chief economist Zhang Zhiwei said that in the past, the Sino-US trade war caused the company to move its supply chain out of China, thereby changing the production and distribution network of products and services. As a result, countries such as Vietnam and India benefited. But this situation seems to be changing. With the surge in cases in India and Vietnam, the supply chain may move back to China.

In Vietnam, due to the Covid-19 outbreak, the northern province of Bac Giang ordered the closure of four industrial parks on Tuesday, including three industrial parks that house Taiwan’s Foxconn production facilities.

Zhang Zhiwei said that in Vietnam and India, the surge in confirmed cases of the new crown has forced the closure of factories owned by Taiwanese contract manufacturer Foxconn. Foxconn is Apple's main supplier, which may put the migration of the supply chain on hold for some time. The key issue here is that international travel is suspended, so multinational companies cannot send employees to India and Vietnam to build new factories.

Originally, the global supply chain was gone, and India was expected to become the "world factory". However, under the turmoil of the epidemic, multinational companies have transferred their orders back to China. A part-time lecturer at New York University and a Chinese management consultant believes that if the epidemic in India does not improve before the summer, some large companies may withdraw from India.