In the face of the epidemic, countries in Southeast Asia have experienced order shortages, and some factories have announced suspensions. Only Indonesia has made a fortune!
Vietnam
Textile and apparel exports are expected to drop by 16% this year
According to statistics from the Ministry of Industry and Commerce of Vietnam, before 2020 In July, the export volume of various yarns decreased by 20.9% compared with the same period in 2019; fabrics decreased by 40%; and processed textiles decreased by 12.1%. The Ministry reminded that in the second half of 2020, Vietnamese textile companies will need to strengthen the development of Vietnam’s domestic market and reduce production management expenses to make up for the company’s revenue, while maintaining product quality, resetting production lines and manpower deployment and other measures to survive the new coronavirus epidemic. Influence.
Global Data estimates that the Asia-Pacific apparel and footwear industry will lose $95.4 billion in sales this year . Global textile industry sales will decrease by US$395.6 billion, down 19.5% from last year, accounting for 29.1% of the total retail industry revenue loss (US$1.3617 trillion).
Vietnamese textile group Vinatex predicted on August 2 that Vietnam’s textile exports will continue to show a downward trend in the second half of 2020. , the decline can be as high as 14-18%, so that the total textile exports in 2020 may reach US$32.75 billion, a 16% decrease from 2019. More news pointed out that as of the end of July, most Vietnamese textile companies had barely received orders for high value-added products such as suits and high-end shirts in the second half of 2020; orders for masks and protective clothing have also been reduced to Vietnamese companies because international supply has been sufficient. Order volume dropped sharply. Therefore, if the export of masks and protective clothing decreases in the future, Vietnam’s textile industry will face greater difficulties in the last few months of 2020.
At present, the epidemic in Vietnam’s traditional export markets of textiles such as the EU and the United States has not yet been fully controlled; in addition, Vietnam’s domestic epidemic has It made a comeback in Da Nang City on July 25. The number of confirmed cases surged to about 100 in just one week, and the first death case occurred on July 31. Under these unfavorable factors, the production, operation and export activities of Vietnam’s textile industry are bound to be affected. The “Europe-Vietnam Free Trade Agreement” (EVFTA), which came into effect on August 1, may not bring “timely” benefits to Vietnam’s textile industry in the short term.
Bangladesh
Exports will return to pre-epidemic levels in January next year
According to Bangladesh Textile Mills According to the association’s data, affected by the new crown epidemic, Bangladesh’s cotton imports in the 2019/20 fiscal year were 7.1 million bales, a year-on-year decrease of 13.4%, which was the first decrease in more than ten years.
According to reports, after the epidemic blockade was lifted on May 30, most textile factories resumed production. Although international cotton prices have fallen sharply before, factories are still digesting early stocks of cotton, and many importing companies have also delayed picking up goods from ports. However, as downstream demand recovers, textile mills’ product inventories have been largely digested, so cotton import demand will increase from now on.
At present, the production capacity of most garment factories in Bangladesh has been restored to about 75%, which shows that orders are recovering smoothly. Industry sources said that if international buyers continue to purchase from Bangladesh at the current pace, the country’s demand for cloth will continue to increase after September.
According to the Bangladesh Textile Manufacturers Association, by July, Bangladesh’s annual cloth sales orders have been completed More than 50%, 75% is expected to be completed by September, all tasks will be completed by the end of the year, and exports will return to pre-epidemic levels by January next year.
Cambodia
Less than 20% of orders are expected to remain flat in the fourth quarter
In the new coronavirus epidemic and Under the dual pressure of the cancellation of EBA (European Union’s most-favored nation treatment), the Cambodian textile and apparel industry is facing great difficulties. About 250 companies have suspended or closed since the beginning of the year, and 150,000 employed workers have lost their jobs, mainly female workers.
According to GMAC survey, it is expected that only 30% of member companies’ orders in the third quarter of this year will be the same as last year, and the rest will be different. degree decreased. Less than 20% of members expect orders to remain flat in the fourth quarter.
Due to the cancellation of EBA tariff preferential measures, the export price of Cambodian clothing products to the EU market has increased relatively, and orders from the EU dropped significantly. In order to save costs, many clothing manufacturers are currently suspending production. The Cambodian government has certain support for relevant enterprises. The enterprises pay workers a minimum wage of US$30 per month and the government subsidizes US$40 to help enterprises withstand the impact of the epidemic.
Myanmar
Nearly 10 companies have applied for closure and have no confidence in the future
Myanmar Investment and Companies Authority (DICA) Director-General Than Hin Lwin said that the Myanmar Investment Commission (MIC) Applications for business closure have been received from approximately 10 companies. According to the Myanmar Investment Law, enterprises that have been established with MIC approval must be approved before they can officially cease operations, and are subject to inspection by the tax department on their tax payments. He said that due to the impact of the new crown pneumonia epidemic, some companies are reducing the scale of production and are even forced to close temporarily or permanently. Some business owners ran away without paying their workers.
It is reported that as of June 21 this year, 100 clothing and textile companies and 63 other companies have closed, and more than 54,000 people have closed. workers lost their jobs. Currently, 101 companies have resumed operations and more than 15,000 workers have returned to work.
The epidemic has had a greater impact on Myanmar’s economy, and the sharp decline in orders from Europe and the United States has dealt a big blow to the future development of the garment industry. . The survey shows that 70% of garment factories are not confident that orders will return to previous levels. At present, many companies are also seeking new development paths, such as switching to production of masks and other epidemic prevention materials.
Indonesia
The textile industry has made huge profits due to the outbreak
Under the influence of the global epidemic, as Indonesia has not yet Deeply integrated into global supply chains, the global health emergency caused by the coronavirus may not have a severe impact on the Indonesian economy.
Indonesian textile and apparel companies have received an increase in new domestic and foreign orders this year as factories look for alternative materials from outside China. about 10%. According to Indonesian company personnel, at a time when the Asian textile and apparel industry is facing closures and layoffs, Indonesian textile and apparel companies are making a fortune due to shipment delays caused by the outbreak and spread of the epidemic.
Su Tanto, deputy chief executive officer of Tangerang-based PT PanBrothers, said the company has seen rising demand, with the second And third-quarter growth was 20% higher than expected. The textiles-to-apparel company initially expected sales to rise 15% this year. Iwan Lukminto, CEO of PT Sri Rejeki Isman, one of Southeast Asia’s largest textile and apparel manufacturers, said the company also saw an additional 15% growth in orders.
All of these orders are placed by local garment factories that produce clothing for global brands. Textile and apparel sales are expected to rise with the approval of the Indonesia-Australia Free Trade Agreement this year, along with a coronavirus windfall. Under the Indonesia-Australia Free Trade Agreement, Australia will reduce 5% import tariffs on textile and clothing products.
Laos
Companies generally face the problem of order shortage
Laos itself has a small clothing industry, and this time it has been hit hard The impact of the epidemic is the largest among all countries. Xaybandith, chairman of the Lao Garment Industry Association, said that the Lao garment industry is highly dependent on imports, and the closure of ports due to the epidemic has had a considerable impact on the supply of raw materials to the industry.
Affected by the epidemic, imports from Thailand, China, Vietnam and other places are currently relatively smooth, but import inspections are extremely difficult. strict. Starting from April, only factories that meet epidemic prevention requirements and have employee dormitories or employees living near the factory can obtain a start-up permit for production. Therefore, the vitality of the entire industry is seriously lacking. Some companies hope to find new exports by switching production of anti-epidemic materials. However, due to various reasons such as raw materials and equipment, only three companies have successfully switched production.
At present, Lao garment companies are generally facing a shortage of orders and will face greater pressure for future development. </p
