Imageaccordingto”TheWallStreetJournal”
InJunethisyear,workersatamaskcompanyintheoutskirtsofYangon,Myanmar,wereproducingmasks.InApril,aKoreanclothingcompanywheretheyworkedcloseddownduetotheepidemic.
InsomeAsiandevelopingcountries,clothingmanufacturingisoftenoneofthepillarsoftheirdomesticeconomies.AccordingtotheWallStreetJournal,astheCOVID-19epidemicbreaksoutaroundtheworld,storesinNorthAmericaandEurope,whicharehardesthitbytheepidemic,aregenerallyclosed,andmajorclothingbrandshavecanceledbillionsofdollarsinorders,resultinginalargenumberofupcomingoutbreaksintheseAsiancountries.Thegoods’clothinghaslostsales.
Notonlythat,EuropeanandAmericancompaniesaffectedbytheepidemichavealsorequestedgarmentcompaniesinsomeAsiancountriestosignificantlyreduceex-factoryprices,citingirresistiblefactorsincontracts.
Affectedbythis,hundredsoffactorieswereforcedtocloseintheindustrialbeltsofPhnomPenh,Cambodia,Dhaka,Bangladesh,andYangon,Myanmar.
Hundredsofthousandsofgarmentworkersmaybeunemployed,andnearlyhalfofthenewpoorpeopleareinSoutheastAsia
AccordingtoestimatesbytheWorldTradeOrganization(WTO),apparelproductexportsaccountforabout85%ofBangladesh’stotalexports,whichhasbroughtmorethan4millionjobstothecountry;inCambodia,nearly20%Familiesacrossthecountryhavemembersworkinginthesewingindustry.Exportsofclothing,shoes,andtravelbackpacksaccountfor75%ofthecountry’stotalexports.Inaddition,VietnamandIndiaarealsomajorexportersofclothingproducts.
InCambodia,approximately260garmentfactorieshavestoppedproduction.AmongthemisaclothingfactorycalledGladpeer,whichproducesvarioustypesofclothingforH&M,Carrefourandothercompanies.InAprilthisyear,thecompanylaidoffmorethan3,500localworkersinCambodia.AlbertTan,thecompany’sgeneralmanager,said:”Iftherearenoneworders,theywillhavenochoiceandwillcloseindefinitely.Thebuyerhasnotmadeitclearwhensubstantialbusinesswillreturn,andthereisapossibilitythatthefactorywillreopenthisyear.Itseemsincreasinglyslim.”
According to reports, as garment factories close down in large numbers, hundreds of thousands of garment workers in Asia will be laid off or temporarily unemployed, most of them It’s female.
Although the wages of these workers are not high, their income is guaranteed, and they can receive standard working meals, basic medical care and education, and can find higher-paying jobs for their loved ones. Basic conditions.
According to “The Wall Street Journal”
Before the epidemic, textile workers who got off work took cars home .
In recent months, many garment factory workers have returned to their native villages. Having lost their source of income, they had to live frugally and even rely on borrowing money to survive. According to estimates from the Asian Development Bank, the economic growth rate of developing countries in Asia this year is only 0.1%, the lowest level in 60 years.
According to World Bank predictions, due to the impact of the epidemic, the number of global poor people (living on less than US$1.9 a day) will increase by 71 million to 100 million this year. This is a strong rebound since 1998, and about half of the new poor people are mainly concentrated in Southeast Asia.
Industry: The apparel industry will be reorganized internally, and European and American companies will turn to “close investment”
Before the outbreak, the global apparel industry had already experienced a trend of reverse growth. After the outbreak, many large cities implemented “blockades” to prevent and control the epidemic, and the consumption downturn is likely to continue for a long time. Some analysts believe that this will deepen the chaotic status quo of the world’s apparel industry and accelerate its internal restructuring.
Bangladesh is one of the world’s largest apparel exporters. “I don’t think the industry can return to where it was before the epidemic. We are going through a lot of changes,” said Lubana Huq, chairman of the country’s top apparel manufacturer industrial group. >
Raymond Robertson, a professor at Texas A&M University in the United States, said: “Currently, the entire apparel industry has no other choice except style. This is why the stagnation in the apparel industry is not just a temporary phenomenon. Reasons.”
In recent months, JC Penney, a long-established American department store, Neiman Marcus, a chain of high-end department stores focusing on luxury goods, and fashion groups Companies such as J.Crew have announced their filing for bankruptcy protection.
Achim Berg, a senior partner at McKinsey & Company that advises global fashion and apparel companies, said: “Large-scale obsolescence could lead to 20-30% of the entire value chain. of companies have gone bankrupt or been acquired, including brand owners, wholesalers and department stores.”
According to Berg’s prediction, in the near future, European and American companies will turn more to ” close investment” rather than continuing the policy of “low-cost labor investment”. Berg said: “In the future, European and American companies will move their production companies to Eastern Europe, North Africa, Turkey and Mexico. This is mainly because they can shorten the time from order placement to delivery, while greatly improving flexibility and agility. European and American clothing Companies are reflecting on their previous over-reliance on production plants in the Far East.”
On the other hand, this is certainly not good news for Asian countries where garment manufacturing is an important economic pillar. </p
