Vietnam’s textile and garment industry may find it tough to meet its export target of $39 billion this year due to the impact of the pandemic. A report by the Vietnam National Textile and Garment Group (Vinatex) said that since June 2021, when the pandemic broke out in southern localities, garment firms have been facing numerous difficulties in production.

In just a month, over 40,000 workers, mainly in the southern region, were laid off. Textile enterprises have also faced risks related to contracts with their clients, according to a report in a Vietnamese newspaper.

Hong Sheng Wen, Deputy General Director of Kwang Viet Garment Co Ltd in the Mekong Delta province of Tien Giang, said that from July 15, 2021, the enterprise's production activities had to be suspended due to the effects of the health crisis.

In the first six months of this year, the textile and garment export value hit $15.2 billion, up by 15 per cent year on year. However, Vinatex chairman Le Tien Truong said the achievements in the first half could be completely lost if creative solutions in production and business are not drastically implemented.

He said that production disruptions can seriously affect supply chains and the lives of workers.

Secretary General of the Vietnam Textile and Apparel Association (VITAS) Hoang Ngoc Anh said social distancing regulations will negatively affect business results of textile companies and the rate of factories suspending operations has reached 35 per cent.

VITAS said the export turnover of the sector is predicted to reach $32-33 billion this year, equivalent to 84 per cent the plan set, if the pandemic is under control in late August.

Textile enterprises are currently receiving many orders from US and the European Union, it added.

Fibre2Fashion News Desk (DS)

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