Textile "runs to eat" weekly

Vietnam's textile and garment industry continues to sink in difficulties when the global clothing market remains quiet due to the Covid-19 epidemic.

According to the report on the industrial production situation in August and from January to August 2020 of the Ministry of Industry and Trade, the Vietnamese textile and garment enterprises are still “eating” their orders each month, even weekly. And to date, there is not any information about orders from October to the end of this year.

And according to a survey by the Ministry of Industry and Trade, many businesses said they have received about 50-60% of orders for September, the remaining months of 2020 and 2021 have not had clear information. The data showed that exports of textiles and garments in August decreased nearly 11%, in 8 months reached 19.25 billion USD, down 11.6%.

On July 7, Mr. Pham Quang Anh, General Director of Dony International Joint Stock Company, which specializes in sewing goods for export to the US, confirmed that the enterprise is facing difficulties, deadlock and even do not know what the year-end quarter will take to feed the industry. multiply. In the past, orders were often signed long in advance. Every September, the company has prepared all the raw materials for making goods until the end of the year and the beginning of the following year. However, until yesterday (7.9), the company has new orders until September.

This year is extremely dangerous for the textile industry because no one predict the future. Therefore, only hope the Government loosens the conditions in support solutions such as lending money without interest to pay employees as well as delaying and delaying the payment of social insurance premiums so that businesses have money to implement. pay salaries, try to retain workers.

He said: “Actually, customers still have emails asking questions, quotes, exchanging information, fabric samples… but just stopped there. Especially, the export masks decreased dramatically. At this time every year, the fever mask products, often customers ask and decide to order within 1 week, finished, the deployment time is short and urgent. However, now to close the mask orders take a month, and the number of orders decreased by 60%.

The Dony company specializes in making uniform clothes exported to the US. During the pandemic, clothing products almost leveled off, but businesses have "turned the steering wheel" to sign a number of export orders to export masks to Europe, the Middle East and Australia, but now the market for masks has also dropped sharply. "Nothing to do after October!", Mr. Quang Anh said shortly.

Large garment enterprises such as Garment Corporation 10 - JSC specializing in exporting shirt and veston ... specializing in making goods to export to the US, EU, Japan and many other countries also confirmed difficulties. In the first 6 months of 2020, the company still achieved after-tax profit of 32.84 billion dong, a negligible decrease compared to the profit of more than 33.2 billion dong of the same period in 2019.

According to Mr. Than Duc Viet, General Director of Garment Corporation 10, in the first 6 months of the year, the amount of traditional products has decreased by about 20-30%, but the company has soon switched to exporting pages, so it can partly solve the problem. However, in the remaining 6 months, especially in quarter 4/2020, the situation was more difficult.

Years ago, Garment 10 as well as many other textile companies always had orders 3-6 months in advance. This means that now the company will have orders for the end of quarter 4/2020 and even the end of quarter 1/2021. But currently, May 10 only receives orders at 50% capacity for Q4 / 2020 and the remaining 50% has to be eaten every month. Besides, most of the shoppers ask for a discount of 10-20% for new orders.

Evaluating the whole industry, Mr. Le Tien Truong, General Director of Vietnam Textile and Garment Group, said the lack of orders is understandable for the textile industry because since the outbreak of Covid-19, the global demand for consumption has plunged. slopes.

Specifically, in the first 6 months of 2020, the world consumption of textiles and clothing decreased by 25% to 230 billion USD, compared to 307 billion USD in the same period in 2019. This makes domestic textile enterprises also orders plummeted from 30-60%, even some units fell 100% or lost, closed. However, the domestic textile and garment industry in the first 6 months of 2020 only saw a decline in exports of about 12%, less than half of the global decline and rose to become the second exporter of textiles and clothing thanks to the joint efforts of DN.

According to Mr. Le Tien Truong, from now to the end of the year, the demand continues to go down, businesses everywhere have to compete fiercely to get orders, so the race to reduce prices makes some companies even have orders but not benefit. profit or loss but still do because they want to maintain jobs for workers. The difficulty is exacerbated when customers delay payment from 60 days to 120 days. If the textile and garment enterprises previously only needed 1 working capital to pay salaries and operating costs, they now need to double.

Mr. Truong said: “The pressure on textile enterprises from now to the end of the year is great. Only eight hundred-year-old US retailers such as JC Penny, Brooks Brothers, RTW Retailwinds (which owns the New York & Co. Chain) ... filed for bankruptcy, with retail sales of about $ 10 billion in the year. 2019. This shows that the resilience of the world textile market cannot be fast. By 2021, consumption will not be able to return to 2019.

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