According to Indian media reports, the Clothing Manufacturers Association of India (CMAI) stated that more than 80% of the Indian garment industry is small and micro enterprises, and most enterprises simply cannot survive the epidemic for 3 to 6 months.
According to it, there are about 3,700 registered companies within the association (CMAI), employing more than 700,000 people. If the Indian government does not take assistance measures in terms of wage subsidies or work resumption plans, it will lead to a significant reduction in jobs in the entire textile industry in India, and the total number of layoffs may be as high as 10 million.
Since the textile industry is an important economic pillar of India, once it collapses, there will be serious consequences. According to the latest forecast from Barclays Bank, comprehensive blockade measures will cost India US$234.4 billion; the Reserve Bank of India recently also admitted that due to the impact of the epidemic, it will be difficult for the Indian economy to achieve a growth rate of 5% in 2020.
This means that the Indian economy, which has previously set a record of “six consecutive years of decline”, may fall into an unprecedented and extremely bad economic predicament.
60% of raw materials are imported from China, but Vietnam has launched an investigation into Chinese textile raw materials!
It should be noted that currently, Vietnam, which is also a major exporter of textiles and clothing, is also experiencing constant problems. It is understood that the textile industries of India and Vietnam are highly dependent on China’s supply of production materials. India needs to import US$460 million of synthetic yarn and more than US$140 million of accessories from China every year. Up to 60% of the raw and auxiliary materials of Vietnam’s textile industry also come from China. . However, under such circumstances that “every time the Chinese market sneezes, the Vietnamese textile industry will catch a cold”, Vietnam made an unexpected decision.
According to the latest decision No. 1079/QD-BCT announced by the Ministry of Industry and Trade of Vietnam, Vietnam will impose restrictions on imports from China, India, Indonesia, and Malaysia. Textile raw materials – some polyester long fibers (also known as filament yarns) initiated an investigation. This investigation was mainly initiated by the leading company in Vietnam’s textile industry. It is understood that this leading company accounts for 67.4% of Vietnam’s total polyester long fiber production. However, it is still unable to compete with peers from China, India and other countries; therefore, this company It is hoped that the investigation will weaken the competitive advantage of Chinese textile peers and ultimately achieve the goal of developing in Vietnam.
Moreover, due to the ongoing global epidemic, Vietnam has repeatedly received chargebacks from European and American companies. According to the latest data from the Vietnam News Agency, in the first two months of 2020, Vietnam’s textile and clothing exports were only US$5.3 billion, a decrease of 3.5% compared with the same period last year. Under this circumstance, Vietnam’s unexpected move may exacerbate the depression of the country’s textile industry. </p
