Home / Knowledge / News / Apparel/Garments / New COVID-19 wave to threaten Vietnamese garment sector

New COVID-19 wave to threaten Vietnamese garment sector

05
Aug '20
Pic: Shutterstock
Pic: Shutterstock
A fresh wave of COVID-19 may worsen the situation of Vietnam’s textile and footwear industries, still reeling from the impact of the first. According to the ministry of industry and trade, apparel production in July rose by 13.2 per cent over June but was nearly 5 per cent down year on year. Exports of textiles and footwear are down by 21 per cent and 8 per cent respectively.

TNG Investment and Trading JSC., which manufactures clothing and footwear, reported first half revenues and net profit were down by 10 per cent and 29 per cent at VND1.84 trillion ($79.3 million) and VND66 billion ($2.84 million) respectively.

The Vietnam National Textile and Garment Group (Vinatex) reported a 15 per cent fall in revenues and 25 per cent decrease in profits despite partially switching to manufacturing face masks and protective clothing and retaining all its workers.

The situation was better than predicted, according to Vinatex's deputy general director, Cao Huu Hieu, who said the company had anticipated declines of 30 per cent in revenues and 50 per cent in profits. Song Hong Garment JSC’s profit had fallen by 44 per cent to just VND122 billion ($5.26 million), according to a report in a Vietnamese newspaper.

While the switch to making face masks and protective clothing was considered a lifesaver for many garment firms in the first half of the year, a global oversupply of these products have caused prices to plummet. Firms such as TNG have even stopped manufacturing masks and started focusing on high-value products.

With many countries, including Vietnam, being hit by a new wave of Covid-19, getting orders has also become a difficult task for the majority of garment firms. Many did not receive a single order for high-value products in the second half of the year, according to the ministry.

Another challenge facing the garment industry is the fact that consumer behaviors have changed dramatically due to the pandemic. The top priorities for consumers now are medicines, food and savings.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Textiles | On 26th Sep 2020

Global economic forecast not as dark as earlier guess: IMF

Though the global economic outlook is not quite as dark as expected...

Pic: Edinburgh Woollen Mill

Fashion | On 26th Sep 2020

FRP appointed to value Peacocks, Edinburgh Woollen Mill

Edinburgh Woollen Mill Group CEO Philip Day has started the...

Pic: Shutterstock

Retail | On 26th Sep 2020

India plans retail trade policy, settling logistics policy

India plans to formulate a retail trade policy for which stakeholder...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

We are staring at livelihood crisis for weavers

Abhimanyu Singh Rathore & Barbara Anna Kosiorek, Kannbar

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Nuno Venda, ROQ

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Emanuel Fertuzinhos,

Emanuel Fertuzinhos

Founded in 1981, Lisama, a Portuguese company, is a pioneer in the textile ...

Pietro Turrin,

Pietro Turrin

Industrie Tessili Bresciane (ITB) has served numerous industries and...

Mehul Vithalani,

Mehul Vithalani

Gopi Knitts is one of the most celebrated manufacturers and suppliers of...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions & Vertriebs Gmbh, founded in 1978 and headquartered ...

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search