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Vietnam's clothing industry may lose 11 trillion dong due to the epidemic

Http://www.textindex.com.cn/ 18:00, April 2, 2020 China cotton.com

Vietnam's national textile and Apparel Group (VINEX) revealed that if export orders continue to be stopped, delayed and cancelled, the country's clothing and textile industry could lose up to 11 trillion dong, which would further lead to unemployment in April and may.

According to a Vietnamese news portal, the larger the clothing brand, the larger the decline, and there is no sign of recovery. If the policy is not adjusted, many enterprises may lose their liquidity at the end of April, and the unemployment rate in April and may will be between 30% and 50%.

If 30 per cent of workers were unemployed in April and 50 per cent in May, the industry's estimated losses would be more than vnd 5 trillion. If this continues for a longer time, the industry will lose 3 trillion dong per month.

Vietnam's garment industry imports about $1.5 billion worth of raw materials every month. If 20% of orders are cancelled, $300 million worth of raw materials will not be used, which may make inventory difficult to circulate.

It is estimated that in April and may this year, the total inventory of Vietnam's clothing industry will lose 50% of its value, equivalent to about $300 million, and VINEX alone will lose about $24 million. VINATEX estimates that if novel coronavirus pneumonia ends in late May, the economy will recover from June, and the garment and textile industry will suffer 11 trillion Vietnamese shield losses, which will lose about 1 trillion Vietnamese Dong.