Vietnam'S Textile Orders Are Expected To Reduce By 70%. Prior To Launching An Investigation Into China'S Textile Raw Materials

In recent years, as Vietnam's reputation has grown louder in the world, more and more clothing giants have chosen to set up production lines in Vietnam. However, due to the worldwide spread of public health emergencies, Vietnam's clothing manufacturing industry has also been affected by a chain reaction. According to the information released by the Nikkei Asia review in April 19th, data from Vietnam's relevant departments show that Vietnam's textile and footwear orders will drop by about 70% in the 4-5 months of this year.

According to reports, Vietnam's industry and trade department also predicts that even if the epidemic trend can be controlled at the end of May, Vietnam's textile industry will lose 1 trillion dong dong (about 300 million yuan) this year, about two times of Vietnam's total textile industry's net profit last year, 510 billion Dong Dong. It is reported that Vietnam's textile industry is so pessimistic, due to the impact of the epidemic, garment giants in Europe and the United States have suspended business, while Vietnamese garment suppliers have not yet received new orders. Previously, Vietnam expects exports to the EU will drop by 8% in the first and second quarter of this year.

It is worth mentioning that, in the face of a major test for the textile industry, Vietnam has turned to textile materials for China to launch an investigation. According to Vietnamese media reports, during April 6th, local authorities in Vietnam decided to investigate textile raw materials, some polyester long fibers (also called filament yarns), from four countries in China, India, Indonesia and Malaysia. It is reported that the survey was initiated by the leading local textile industry in Vietnam, hoping to increase the competitive advantage of its own market through this move.

Data show that Vietnam's textile industry 55-60% raw materials are supplied by China, mainly from China's clothing raw materials, yarn, cloth and other related materials. However, although many garment giants choose to arrange production lines in Vietnam, but in the years of development, China's clothing and textile industry has gradually got rid of the previous single processing mode, ushered in a new breakthrough.

According to an interface news report, a Chinese clothing supplier pointed out that the basic style of fast fashion clothes can be transferred to Vietnam and India in large quantities. But considering the professional and technical level of manufacturers such as Vietnam, the international giants still keep some of the garments that are required to be processed in China. At the same time, China's garment manufacturing is accelerating the upgrading of the industry.

According to people in Shanghai, China will focus on robotics in the future. It will enhance the efficiency of supply chain, material traceability and quality control through the automation related technology. It is reported that with the continuous development of China's electricity supplier market, the Japanese clothing giant UNIQLO founder Liu Jing has repeatedly praised UNIQLO's business model in China, and that the use of China's model can save Japan and other regional business decline. It is not hard to imagine that in China's rapid promotion of industrial upgrading, the international garment manufacturing market will continue to shine in the future.