Vietnamese firms face raw materials shortage from China

Phan Thi Thanh Xuan, vice chairwoman and general secretary of the Vietnam Leather, Footwear and Handbag Association, said businesses in the industry had to slow down export deliveries as their Chinese partners lacked empty containers for transporting raw materials and accessories.

The supply of raw materials from China also decreased as many factories had to suspend operations, she added.

Escalating fuel prices has also forced plastic materials prices to go up, influencing input costs of plastic product manufacturers. Some garment companies have had to postpone delivery of orders due to the lack of raw materials, according to Vietnamese media reports.

"The most important task of enterprises at this time is to restructure production soon, find alternative sources of supply to offset the shortage of the current raw materials and outdated equipment. Enterprises also need to promote linkages, support and use made-in-Vietnam products in production and business activities to reduce dependence on external resources," the ministry of industry and trade said.

The ministry asked manufacturers to find new sources of supply outside China besides negotiating with partners to share risks and extend the delivery time.

Fibre2Fashion News Desk (DS)