Apparel / Textiles & Accessories

In the past two months, the rapid deterioration of the second wave of the new crown epidemic in India has become the most high-profile event in the global fight against the epidemic. The raging epidemic has caused many factories in India to close, and many local companies and multinational companies are in trouble. At the same time, many Southeast Asian countries have also been affected by the epidemic, and a large number of companies have shut down or closed down.

India's garment industry loses a large number of export contracts

According to media reports, due to the blockade measures during the epidemic, the exports of the Indian apparel industry have shrunk severely. In 2020, the exports 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.

In the clothing cities of Delhi and Bangalore, the labor absenteeism rate in the clothing industry is as high as 50%. Industry insiders said that normally this time of year is the peak time for placing orders, but buyers from all walks of life are now more cautious.

Some Indian textile dealers in Surat said that their business has dropped by almost 90%. It is reported that there are 65,000 textile traders in Surat. If calculated according to the average number, the Surat textile industry loses at least US$48 million per day. At present, the entire Indian textile industry is facing a rapid decline.

The current situation of Surat is only a microcosm of the Indian textile industry, and the entire Indian textile industry is facing a rapid decline.

Nearly 400 companies in Vietnam exit the market every day

It is not only India that is affected by the epidemic, but also Vietnam.

In the first five months, the number of newly established enterprises and the total new registered capital in Vietnam reached 55,800 and 778.3 trillion VND respectively, representing a year-on-year increase of 15.4% and 39.5%; the average registered capital of newly established companies was 14 billion VND, a year-on-year increase An increase of 20.9%.

In addition, nearly 22,600 enterprises resumed work and production, an increase of 3.9% year-on-year; the total number of newly established enterprises and enterprises resumed work and production reached 78,300.

On the other hand, the total number of companies that have suspended operations, suspended operations and waited for deconsolidation procedures and completed dissolution procedures reached 60,000, a year-on-year increase of 23%.

Among them, 31,800 companies were temporarily closed, a year-on-year increase of 22.3%; 20,000 companies closed and waited for demolition procedures, a year-on-year increase of 20.7%; 8,000 companies that completed dissolution procedures, a year-on-year increase of 32.3%. On average, nearly 12,000 companies exit the market every month, which is equivalent to 400 companies every day.

The pandemic in Southeast Asia is urgent

In addition, in recent times, other Asian countries have shown signs of warming up, and Asian countries such as Pakistan, Cambodia, and Vietnam are also suffering from the impact of the new crown epidemic.

Pakistan: There are currently 938,000 confirmed cases and 20,000 deaths. Due to the total blockade and strict restrictions on transportation between provinces, workers are currently unable to go to work. The country’s textile industry will suffer huge losses and production will drop significantly.

Cambodia: A total of 37,000 confirmed COVID-19 cases and 311 deaths have been reported. The Cambodian garment industry employs 850,000 people and is a priority for vaccination. Half of the garment workers in the most severe areas have been vaccinated.

Vietnam: The number of confirmed cases of the new crown reached a peak. Currently, it is difficult for Vietnamese textile companies to find workers. Due to increased restrictions on the movement of people, Halong Bay and Lan Halong Bay have been closed until further notice. The Vietnamese government has suspended entry procedures for all foreigners.

Indonesia: Currently, partial blockade is implemented due to the severe epidemic. Affected by this, it is difficult for workers to go to work, and the test report needs to be negative, but most people cannot get the test report frequently. The country's textile industry plans to achieve an average annual growth of 5% in the five years from 2021-2026. Exports are the source of growth for the textile industry.

A large number of Southeast Asian orders transferred to China

Affected by the epidemic, exports from the apparel industry in Southeast Asian countries such as India have severely contracted, and some textile orders have been transferred to China. The person in charge of a textile company in Jiangsu said that some orders originally from India have returned to my country due to the repeated local epidemics causing insufficient operating rates of textile companies.

In the production workshop of a garment company in Dongguan, more than 200 looms are running at high speed, and the workers are busy and orderly producing according to orders. The person in charge of the company said: "Including some orders from Southeast Asian countries such as India, 40% have been transferred to our company, and now the operating rate has reached 100%."

According to customs statistics, from January to May this year, the country’s textile and apparel exports amounted to US$112.69 billion, a year-on-year increase of 17.3%. Among them, textile exports were US$56.08 billion, an increase of 16.1% over the same period in 2019; in May, clothing exports were US$12.20 billion, a year-on-year increase of 37.1%.