In the second half of the year
Vietnam’s textile and garment industry will face many challenges
According to the Vietnamese Youth newspaper, on July 27, the executive president of Vietnam Textile and Apparel Group (Vinatex) Fan Chuncheng said at the opening ceremony of the 2022 Textile and Apparel Industry Industry-Equipment and Raw Materials International Exhibition, due to inflation in some countries, political instability and other reasons caused by the drop in international market demand, Vietnam’s textile and garment industry will face many difficulties in the months before the end of the year.
At the same time, in addition to cotton prices fell sharply, clothing industry other raw materials prices affected by transport factors are still continuing to rise. Some distributors are sitting on a huge backlog of goods and facing declining sales as they work through the backlog. Producers are also facing rising raw material prices against a backdrop of declining purchasing power.
There is no order
Factories were forced to take turns on holidays, holidays and layoffs
On July 30, Vietnamese media outlet Vnexpress reported that after six months of strong recovery in the first half of the year, many factories began to run out of orders in the second half of the year, and had to cut production hours, stop hiring and reduce the workforce.
The second half of the year is also a tough time for textile, shoe and clothing workers to reduce orders. Some factories have to rotate their workers on leave.
Ms. Tran Thi Tuyet Mai, deputy secretary general of the Vietnam Textile and Apparel Association, says companies received a lot of orders at the beginning of the year, but lacked workers and many factories had to find places to outsource.
In the second quarter, the outbreak of the Russia-Ukraine war, rising oil prices, the epidemic… Has had an impact on people’s global spending habits. The purchasing power of fashion clothing products has fallen sharply, inventory can not be sold, and brands do not sign new orders. Some factories are running out of orders, forcing them to recalculate appropriate staffing plans, such as taking Saturdays off and assigning workers to leave.
Mr Nguyen Huu Tuan, Human Resources Director of Tanh Cong textile-Investment-Trade Joint Stock Company in Tan Binh Industrial Park (Tan Phu District), said the factory was still operating normally, But by September-October, orders will be lost.
According to the plan, companies will put workers on holiday at the same time, and factories will shut down for eight days in conjunction with the National Day holiday. Then, depending on the situation, the company gives workers Saturday off and reduces overtime. Workers’ incomes are expected to fall by 10-20%.
Mr Duan, who has more than 30 years of experience in the textile industry, said the second half of this year would be a good time to “clean up” the industry. Some enterprises are weak and have no orders, the cost is too high to survive, have to cut production or close down.
During the epidemic, you need to use Lanhine’s face mask.
Post time: Aug-07-2022