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Difficulties in the pandemic of the textile industry Go all out to maintain production

  • 02/08/2021

In the past time, some southern provinces and cities have implemented social distancing to combat the outbreak of Covid-19. Therefore, the production and business activities of enterprises in the textile and garment industry are also greatly affected. Difficulties pile up

Vietnam Textile and Garment Group (Vinatex) is in the most difficult time since the outbreak of the Covid-19 epidemic until now. For the first time, the group had a case of F0 and the situation was widespread. As of July 10, more than 10,000 workers could not come to the factory - accounting for 10% of the group's workforce and over 20% of the southern workforce (the region contributes over 60% of the group's income). group).

The outbreak of the disease in the southern provinces and cities - an area with a large number of textile and garment enterprises producing and trading - made the textile and garment industry struggle to maintain operations.
Mr. Le Tien Truong - Chairman of the Board of Directors of Vinatex - said that when Ho Chi Minh City In Ho Chi Minh City, Dong Nai and many localities applying Directive No. 16/CT-TTg on urgent measures to prevent and control the Covid-19 epidemic of the Prime Minister, the number of workers unable to work will increase rapidly. . “Difficulty will pile up even more when all businesses in the group have enough orders until the end of September and a part to December. The commitment to deliver goods and fulfill the responsibilities of economic contracts is also a risk. The risk is very big for each business” - Vinatex leader worried.

Although Viet Thang Jean Co., Ltd. has actively repaired the factory, prepared more equipment to arrange for workers to both work and rest on the spot according to Directive 16, and at the same time stabilize production. However, business leaders are still very worried because production in the condition of distance can only reach 50% of capacity, while factories in Ho Chi Minh City are still very worried. Ho Chi Minh City must reach an output of 20,000 products/day to have enough 5 containers/week to deliver to customers.

The City job. The implementation of social distancing in Ho Chi Minh City and southern provinces and measures to prevent and control the epidemic has added to the burden, forcing textile and garment enterprises to struggle to both fight the epidemic and maintain production.

Develop production and business plans for each level

After 6 months, the export turnover of Vietnam's textile and garment has reached nearly 19 billion USD, an increase of over 20% compared to 2020, surpassing the figure of the same period in 2019. The Ministry of Industry and Trade said that the industry recovered quite soon. compared with the forecast that it will take 2021 to return to the 2019 threshold, even until the third quarter of 2022. This result, although it is considered positive, but considering the complicated development of the epidemic, the provinces and cities in the South implementing measures to prevent and control the epidemic can see that the textile and garment industry will be very struggled to keep up the gains made in the first half of the year.

In addition, there are not so bright forecasts for the industry in the second half of 2021. In which, trade costs are forecast to remain at a high level and be a key risk for trade recovery. A stable anchor rate is also a disadvantage for export industries such as textiles and garments while fiercely competitive countries such as India, Bangladesh, etc. have adjusted their local currencies to decrease against the USD. Vietnam's textile and garment exports to the US increased by nearly 30% in the first 6 months of the year, which is both a joy but also a potential risk in US policy towards Vietnam, especially in terms of article 301 of the 1974 Commercial Law. still not fully cleared up in the US approach.

As for Vinatex, the second half of 2021 also identifies many new risks. Mr. Le Tien Truong said that key enterprises such as Phong Phu, Viet Tien, Viet Thang, Nha Be, Huu Nghi are located in the epidemic area and have to work at a distance, the working rate is low; Strength items have not shown any signs of recovery; yarn industry has great contribution in efficiency but has high sensitivity to the market, business position is not sustainable; good market opportunities, but if the production schedule is not guaranteed, there is a risk of economic consequences.

Facing the accumulated difficulties of textile and garment enterprises, especially those in the southern region, the Ministry of Industry and Trade has finally asked the agencies of the ministries and localities to closely follow the situation of industrial production in the area, guiding the implementation of effective measures to prevent and control the Covid-19 epidemic while ensuring production and business development. Organize and guide the Department of Industry and Trade, industrial zones and clusters to develop production and business plans at each level in the context of the complicated developments of the Covid-19 epidemic, with specific solutions to restart restart operations of factories and enterprises meeting safety criteria.

From the reality of production and business of enterprises, Vinatex leaders also suggested that officials and employees of the group absolutely comply with the regulations of the health industry in epidemic prevention and ensure the safety of fish. individuals, families and businesses; ready to participate in production in the condition of both production and stay at the factory. Organize trade unions, actively participate with managers to prepare accommodation conditions for workers, prepare necessities, and provide on-site supplies. Manufacturing facilities in the North and Central regions are ready for both production and accommodation conditions; In particular, increasing the maximum capacity not only ensures over-completion of the task, but also has the opportunity to compensate for the output for southern enterprises due to the reduced distance.

Many businesses also want the state to have a policy of debt freezing, debt rescheduling, reducing interest rates on bank loans, and having a favorable mechanism for businesses to access loans at preferential interest rates to prepare for upcoming orders. .



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