Everyone knows that due to cheap labor and other factors, more and more light industries have begun to move out of China. Such foreign companies that move out of China usually choose countries such as Vietnam and Indonesia that are close to China to set up factories. , This is because they cannot control costs without raw materials from China!
OTEXA’s latest data shows that the world’s textile products and clothing trade has changed, as many countries have begun to migrate from China to emerging countries such as Vietnam, Bangladesh, and Indonesia.
The outbreak of the epidemic endangers economic development, opening up exports to the outside world, and the export volume is small Very pitiful. Specializing in the domestic market, the overall confidence in consumption is sluggish, and the consumption capacity has always been relatively limited. For example, according to data from the National Audit Bureau, in the past few months of 2020, total retail consumption across the country dropped by 20.5% compared with the same period last year, and consumption of home textiles and textiles also dropped by 30.9%.
It is important to note that due to the impact of this epidemic, the Vietnamese textile industry has also suffered serious losses. About 70% of orders from European and American countries have been directly Cancel! In addition, the Vietnamese government department also stated that although most countries will reopen to the outside world by the end of May, they have already lost 1 trillion Vietnamese dong (300 million Chinese yuan), and the loss is irreversible!
In fact, as the most critical raw material distributor in Vietnam’s textile industry, China has also suffered huge losses. However, Vietnam does not seem to have made it clear, but directly announced that it will target Indonesia, Singapore, and Indonesia, including China, launches anti-dumping investigation of raw materials!
Vietnam will choose this opportunity to create difficulties, mainly to solve its dependence on external raw materials and then help the country’s raw material industry chain! But Vietnam thinks too well, because even if it does not use raw materials from other countries, it cannot change Vietnam’s image in the minds of European and American countries!
Some European and American clothing manufacturers said that the clothing produced and processed in Vietnam are generally fast fashion brands, and the prices are generally not high, so even if there are loopholes, there will be no Too much loss!
But China is different. Generally, mid-to-high-end brand clothing manufacturers will still choose to produce in China, simply because Chinese employees have better skills and are less likely to lose their brands!
Vietnam has made harsh words. Vietnam’s foreign exports this year have been set at 300 billion. Although under such circumstances, Vietnam’s exports in 2020 Textile exports have reached US$42.5 billion (RMB 294 billion), and after reaching a free trade agreement with the EU, this goal is still possible.
The premise for the development of Vietnam’s textile industry is to rely on our country’s production raw materials, and 60% of auxiliary materials come from our country. In particular, some yarns, fabrics, etc. are imported from our country. And in the world, there is also such a voice: without the support of Chinese raw materials, there would be nothing made in Vietnam.
In short, although the outside world thinks that Vietnam has become a global textile center, the fact is that this is not the case. Apart from the production and processing of some cheap clothing, Vietnam has no advantages at all, and its raw materials are also poor. No, Vietnam will not be able to enter the overseas mid- to high-end market. If it continues to refuse to improve, Vietnam is likely to suffer serious losses! </p