Vietnam's textile and footwear manufacturers are trying to import materials from China, and China closed its factories due to the outbreak of coronavirus. The Vietnam Textile and Apparel Association (VITAS) has advised the company to develop other markets to achieve its goals. China accounted for 60% of Vietnam's clothing imports and 55% of fiber imports in 2019.
The coronavirus outbreak may have a negative impact on 10 major industries in Vietnam, including textiles. As Chinese factories close, stock brokerage company SSI Securities (SSI) observes.
A Vietnamese newspaper reported that some Vietnamese factories have run out of raw materials, some companies 'inventory will last for a few weeks, and some companies' raw materials will take several months.
In the current situation, there is little room to order more inventory from China.
In Hubei province in central China, most coronavirus-related deaths have already occurred, and the factory will not resume production until February 14, and may operate on a limited scale thereafter.
Nguyen Quoc Anh, president of the Ho Chi Minh City Rubber and Plastic Manufacturers Association (HRPMA), said that Vietnam ’s rubber and plastic production mainly depends on China, of which 70% of the materials are imported from the country.
According to data from the Vietnam General Statistics Office (GSO), in January this year, Vietnam ’s fabric imports from China fell by 18.1% to US $ 950 million. It added that in all markets, exports of textiles, a major sector, fell 21% year-on-year to US $ 2.6 billion, while footwear exports fell 9.7% to US $ 1.6 billion.
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