Garment and apparel industry faces serious shortage of orders
VOV.VN - Previous years have seen garment and apparel businesses have orders until the end of the year and into the first half of next year, while this year many firms are only be able to receive orders on a monthly or even weekly basis.
According to figures compiled by the Ministry of Industry and Trade (MoIT), the global textile and garment market during the third quarter has failed to show many positive signs or drastic changes. Simultaneously, consumption demand for products within the United States, the EU, and Japan have endured a slowdown, with this being the main factor that has led to a decline in demand among the textile and garment manufacturing sector.
Cao Huu Hieu, deputy general director of Vietnam National Textile and Garment Group (Vinatex), said that at present it remains impossible to offer long-term forecasts, although the group has considered a scenario in which revenue falls by 20% this year.
Furthermore, orders ahead in the fourth quarter currently stand at a diminished figure in comparison with previous years, posing a significant challenge for local businesses and the production plans of the group. In addition, mask orders have endured a sharp dip in quantity whilst the price has dropped to a low level with production costs barely being met, the Vinatex leader said.
A report released by the MoIT shows that during the first eight months of the year, the local garment and textile industry contributed approximately US$22 billion to the country's overall export turnover, despite recording declines of more than 11% compared to the same period last year. Indeed, resurgence of novel coronavirus outbreaks globally has also caused more difficulties for Vietnamese textile and garment production, along with exports.
Most notably, many domestic firms have only received 50% to 60% of orders in comparison to September last year, while there is yet to be clear information regarding orders ahead in the remaining months of the year and into 2021.