nCoV likely to affect raw material source of garment and textile sector

VOV.VN - Amid complicating developments relating to the novel coronavirus (nCoV) epidemic, Vietnam’s garment and textile sector has showed their concerns regarding its impending impact as a number of firms are considering replacing imported raw materials from with domestic ones.

ncov likely to affect raw material source of garment and textile sector hinh 0
The Ho Chi Minh City Textile and Garment Embroidery Association said that the material import and export proportion of the country’s garment and textile sector currently stands at between 30 per cent and 40 per cent annually.

According to figures released by the Ho Chi Minh City Textile and Garment Embroidery Association, enterprises in the southern city have spent approximately US$7 billion importing raw production materials for the sector, with the majority coming from China.

At present, firms in the city’s garment and textile industry have raw materials for production activities until the end of February as a result of their imports of raw materials ahead of the Lunar New Year (Tet).

Despite this, businesses are becoming increasingly worried about the shortage of the production material source ahead in March and April due to the ongoing impact of the nCoV.

Several businesses are noting that the epidemic could potentially affect trading ties between both Vietnam and China in the coming time.

Currently, local enterprises have moved to adjust their production plans and work alongside each other in a bid to overcome difficulties that may occur in February and March, stated Pham Xuan Hong, Chairman of Ho Chi Minh City Textile and Garment Association.

VOV

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