Vietnam’s garment industry insiders said they are optimistic about the strong development prospects of Vietnam’s garment supply chain in 2021 amid the COVID-19 crisis.
Although there will continue to be a shortage of orders in 2020, the shortage of orders can be partially alleviated by converting production lines to the production of masks.
Ms. Helen Bui, CEO of KNA Appasdfssdfsrel Sourcing asdfssdfsnd Masdfssdfsnd Masdfssdfsnufasdfssdfscturing, a manufacturer, trader and exporter of needle-woven garments in Ho Chi Minh City, said that forecast demand will be in 2021 With the recovery in 2019, Vietnam’s garment industry is well-positioned to win other orders.
She told the media: A favorable factor will be the EU-Vietnam Free Trade Agreement (EVFTA) that takes effect in August, because the agreement will export Vietnamese goods to the EU market Bring maximum advantage.
Resilience under the pandemic
A German-based company specializing in exports Christoph Peters, general manager of Illies Vietnasm, an industrial machinery and technology trader of textile equipment to Vietnam, stressed that textile and garment manufacturers in Southeast Asian countries have remained operational during the COVID-19 lockdown.
He believes that Vietnam’s logistics industry has also maintained its operation. Compared with other Asian countries, Vietnam has shown greater development resilience.
In fact, Illis Vietnasdfssdfsm expects steady sales growth in 2020 relative to the contraction in 2019, indicating that investment will continue to be poured into Vietnam’s garment and textile industry .
Peters said: Vietnam is different from Bangladesh, Pakistan, and India. Currently, orders placed by international buyers in Vietnam will be guaranteed and fulfilled, but for Bangladesh, Pakistan and India, orders placed by international buyers in Vietnam will be guaranteed and fulfilled. As far as Pakistan and India are concerned, these countries generally give the impression that production and logistics may be interrupted at any time due to the continued unstable epidemic situation and inadequate policy responses.
He added: I believe that as Western economies rebound from recession, Vietnam’s garment supply chain will be ready to handle this rebound in demand and will leave all regions far behind. Competitors have won orders, and China and Taiwan have relatively well controlled the COVID-19 epidemic.
Indeed, Vietnam’s response to the COVID-19 epidemic is impressive. According to official data, Vietnam ranks third in the world in terms of the number of infections; according to the regulatory website Worldometers.info .’s data shows that there are only 22 cases of infection per million people.
Casual wear and home wear
Headquartered in Ho Chi Minh City, responsible for Simon Reed, an expert in garment management, procurement and manufacturing, said that due to the fact that consumers are stuck at home due to stay-at-home restrictions, the performance of Vietnamese casual wear and loungewear manufacturers is better than that of enterprises engaged in the fashion supply chain.
He added that orders from European supermarket chains and online retailers are growing relatively quickly.
Generally speaking, it is believed that it will take time to return to normal, and business closures will also occur on the way, including agents and trading companies, so greater changes are needed in the future. to consolidate supply and direct trading models.
Factories still prepared to extend credit lines to customers will benefit, he added. In the long run, Vietnam will benefit from the transfer of clothing orders from China.
At the same time, 2020 will still be arduous for the development of Vietnam’s garment industry. A report from the Vietnam Ministry of Industry and Trade pointed out that in the remaining time of 2020, many textile and Ready-made garment companies have received few orders, especially for high-priced products such as jackets and high-end shirts.
The report pointed out that Vietnam’s textile and garment exports from January to July 2020 fell by more than 12% to US$16.2 billion compared with the same period in 2019.
Ms. Bui said: It is still very difficult at present. We have been working hard to survive the decline in export market demand by turning to the production of reusable masks, but we think that in 2021 It will definitely be better. Reed added that over the past 5-6 months, a lack of orders has led to layoffs at factories in Vietnam, even as factories remained open.
Vietnam is the EU’s second largest trading partner in ASEAN. The EU-Vietnam Free Trade Agreement (EVFTA) is expected to expand Vietnam’s textile and garment exports to the EU market. Through the phased tariff concession and tax reduction model, not only will the EU gradually eliminate import tariffs on Vietnam’s textiles and clothing to the EU, but also Vietnam’s garments, including garment fabrics from South Korea or other ASEAN countries that have signed free trade agreements with the EU. Production will still be eligible for tax exemption under the agreement. </p
