Vietnam: Textile Orders Dried Up Completely, Production Unsustainable

At present, Vietnam's textile and clothing industry has not yet come out of the new epidemic. Due to the unstable downstream demand, the current textile orders are still short orders. According to the data of Vietnam's Ministry of industry and trade, the export volume of Vietnam's textiles and clothing was 19.6 billion US dollars, down 11.6% year-on-year.

At this time in previous years, the textile industry has begun to receive orders for the first half of next year, but now the longest order is only one month or even a week. Some manufacturers' orders in September fell 40-50% year-on-year, and orders for the rest of this year to 2021 have not been confirmed.

At present, the consumer confidence of the three Vietnam textile and garment export destinations, Europe and America and Japan, is very low, which brings great pressure to Vietnamese textile enterprises. Vietnam's national textile and Garment Group expects the revenue of Vietnam's textile enterprises to drop by 20% this year.

Up to now, Vietnamese textile enterprises have almost no orders for the fourth quarter, so it is very difficult for factories to arrange production plans. With the decline in the price of masks, production can only just break even, enterprises are trying to save themselves.

In 2019, there are about 6800 textile and garment enterprises in Vietnam, with an export of US $32.85 billion, a year-on-year increase of 7.8%.