The garment and textile sector will still face difficulties in the last months of 2020 due to a lack of clients.
Garment and textile sector continues to face difficulties.
According to the Vietnam Textile and Apparel Association Chairman Vu Duc Giang, their goal for 2020 was USD40bn in revenue but the projected revenue as of now is only USD32bn. Key product growth like suits and shirts for men dropped by 70-80%.
In the recent conference about Vietnam’s economic prospect and opportunities for Vietnamese firms and the UK, Truong Van Cam, vice head of Vietnam Textile and Apparel Association said because of Covid-19, the supply chains and demand had been disrupted and dropped sharply worldwide.
Phi Ngoc Trinh, general director of Ho Guom Group JSC said their orders for suits for men and other high-end products had nearly stopped. They had to switch to make suits for women for brands like Mango, Zara and Walmart.
Vice head of the Industry Department under the Ministry of Industry and Trade Nguyen Ngoc Thanh said the textile sector was one of the hardest hit by Covid-19. Vietnam’s export revenue in the first 10 months reached USD24.76bn, a decrease of 9.3% compared to the same period last year.
Because of Covid-19, many firms switched to other kinds of products like protective suits or shirts to maintain business, however, product value was not as high. “The profit margins are totally different between luxury fashion and regular fashion,” said Nguyen Lien Phuong, director of LP Vietnam Businessman Academy.
The Ministry of Industry and Trade has consulted and proposed several solutions to the government to help the sector. The ministry is working with foreign firms and authorities to find new partners and markets.
The Vietnam Textile and Apparel Association has also held many online conferences to connect local and foreign firms. However, the textile sector will continue to face difficulties in the last two months of 2020 and even in the first half of the first quarter in 2021.
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