In April, many enterprises producing textile and garment for export were cut orders. It's a challenge in maintaining production as well as ensuring job for workers. Many units have changed production to hold on.
In April, many enterprises producing textile and garment for export were cut orders. It’s a challenge in maintaining production as well as ensuring job for workers. Many units have changed production to hold on.
Most orders cut
As the Covid-19 epidemic appears in the EU and the US, partners specializing in importing textiles and garments in these markets began announcing order cuts, proposing an extended delivery time of 3-4 months. According to Le Van Hoat - Human Resources Manager of Khatoco Garment Factory, in Khanh Hoa, there are nearly 50 garment enterprises with 200 or more employees. Since end March, most businesses have been cut orders.
In April, as Covid-19 has become outbreak in Europe and the US, partners in these two markets continued cutting orders in larger quantities. Currently, companies specializing in exporting garments to Europe and the US have no orders to produce. Meanwhile, the recovery of this market completely depends on the evolution of Covid-19 epidemic.
The US market accounted for 40% and Europe accounted for 12% of the total export value of textile enterprises. Therefore, the suspension of imports from the US and the EU will certainly impact textile exports in the near future.
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Changing to producing cloth face masks
With the increasing difficulties, many textile enterprises have changed to producing masks as a solution to hold on. It helps companies have revenue and create jobs for workers. Although the market for cloth face masks in the country is abundant, the demand for face masks in the world is still high due to the Covid-19 epidemic. Textile units have quickly produced cloth masks which are antibacterial, waterproof, anti-droplets, even can prevent UV, etc.
Vo Dinh Hung - General Director of Nha Trang Textile and Garment Joint Stock Company said that thanks to manufacturing antibacterial masks, all employees of the company still have jobs. The company is one of the few textile units that have not cut labor or cut working hours. According to Mr. Hung, Vietnam is among the leading countries in exporting textiles and garments. With the capacity of an annual export turnover of USD39 billion USD, Vietnam is fully capable of supplying cloth masks to the world when turning to cloth mask production. The change from traditional textile products and masks will be an important direction for textile enterprises, which not only can help them survive in the epidemic, but also can benefit the country. Nha Trang Textile and Garment Joint Stock Company has launched about 3 million masks of antibacterial and UV-resistant cloth to the market. Recently, the unit continued to receive orders for 400,000 masks for the US market. At the same time, the company has also been certified by the health authority for 3-layer antibacterial cloth mask can prevent droplets. This is the requirement for the company to increase exports of this product to the US and other countries. In the present, the production of masks is the most effective solution to maintain the operation of textile enterprises.
Agreeing with this view, Ms. Duong Hai Uyen, CEO of Cam Ranh Garment Joint Stock Company said that in the current situation, only producing masks is the fastest solution for the textile industry, but the domestic market has been full, so it must focus on exporting. This needs the support of the Ministry of Industry and Trade in connecting supply and demand. However, this is only a temporary solution, businesses should identify the mask as a timely product. Demand for masks may last through the year, but will gradually decrease. In the long term, businesses expect to receive support packages from the Government soon to raise capital, maintain operation, and be ready to switch back to traditional products when the epidemic is over.
Dinh Lam
Translated by T.T
