Apparel / Textiles & Accessories

The day before yesterday, according to the "Vietnam People's Daily" report:

At present, textile and footwear companies have placed orders in the third quarter, or even the whole year, and are promoting and discussing orders for 2022.

This is a positive sign that the market has been stagnated due to the impact of the new crown pneumonia epidemic for more than a year, and it is also a "good sign" for companies to increase their export efforts and strive to achieve the export value of 39 billion US dollars.

Beijiang will bring more than 30,000 workers back to the factory

Recently (June 22), according to the "Vietnam Express" report:

The goal of Bac Giang Province is to return more than 30,000 workers to work by the end of July and to reach 120,000 workers in the four industrial zones by the end of the year.

On June 22, Nguyen Xuan Yuk, deputy manager of the Industrial Park of Bac Giang Province, stated that the province plans to resume production by about 400 enterprises before July 1.

After nearly a month of resumption of operation, the four major industrial parks: Guangzhou, Fanzhong, Ting Tram, Songxi-Hanoi Hoang, and Beijiang have identified and approved 153 companies with nearly 24,000 employees.

Up to now, about 16,000 people in 86 companies have officially resumed work. This number of employees accounts for nearly 11.4% of the total number of approximately 140,000 employees here.

Previously, Beijiang required companies to welcome workers to their centralized accommodation for at least 3 days when they reopened, to test for Covid-19 and arrange quarantine areas if necessary.

In the event of an infection, the government will not force companies to set up centralized quarantine areas in the workplace, but in accordance with district-level plans. All localities arrange backups for quarantine areas. If centralized quarantine is required, the enterprise pays for it.

In terms of employment, enterprises give priority to recruiting workers who live in dormitories in the province, preferentially recruiting workers from within the province, and secondly to those from outside the province. According to Mr. Ngoc, this choice is to create employment opportunities for workers who stay in the area, because there are still nearly 40,000 foreign workers in small villages or safe centralized isolation, sampling multiple times. Production resumes smoothly and a large number of workers are needed, so Beijiang will consider foreign workers.

“In the beginning, it may be difficult to arrange a large number of workers. But the province has specific plans, and it is difficult for companies to dismantle them,” Mr. Ngoc said affirmatively.

If one person is infected, the entire factory will be locked down and production will stop.

Under the complicated and unpredictable situation of the new crown pneumonia in Vietnam, risks may occur at any time. As long as one person is infected, the entire factory will be blocked and production will be suspended, causing serious losses to the company.

Therefore, companies must be flexible and take the initiative to adapt to market changes during and after the epidemic as quickly as possible; actively change production and operation methods; innovate technologies, realize digital transformation, and take advantage of the opportunities brought by the new generation of free trade agreements.

At the same time, companies also hope that the government will adopt mechanisms and policies to help companies or propose economic support plans that are in line with different industries, especially for labor-intensive companies that are directly affected by the epidemic.

The Chinese government aids Vietnam's new crown vaccine to arrive in Hanoi

According to the website of the Chinese Embassy in Vietnam, on the afternoon of June 20, the Chinese government assisted Vietnam's new crown vaccine to arrive at Noi Bai Airport in Hanoi. Ambassador Xiong Bo, the Chinese ambassador to Vietnam, officially handed over vaccines to Vietnam’s Minister of Health, Nguyen Thanh Long. Both parties delivered speeches and exchanged views on strengthening anti-epidemic cooperation.

Hu Suojin, Minister Counselor of Economics and Commercial Affairs of the Embassy in Vietnam, Chen Hong, Political Counselor, Deputy Minister of External Affairs of the Communist Party of Vietnam Nguyen Mengqiang, and Deputy Minister of Foreign Affairs Nguyen Minh Yuk attended the meeting.

Previously reported: Tragic! A large number of textile orders in India have been cancelled, and nearly 400 companies in Vietnam withdraw from the market every day!

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 amount of 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 deconsolidation 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%.