Enterprises from 2 key import markets of textile sector suspend import

Textile enterprises are temporarily suspending exports to major markets due to the Covid-19 epidemic

Previously, due to the impact of the Covid-19 epidemic in South Korea, the US and the EU, import partners in these countries had reduced orders by 30-50%. Currently, the EU market announced to stop importing goods within a month, the US market also stops importing goods within three weeks.

“With the temporary closure of the enterprises from the two largest markets, enterprises would face many difficulties as the characteristics of the textile industry is seasonal production. This would greatly affect the production and business plans of enterprises. Currently, enterprises only rely on Japan and ASEAN markets, but these markets account for a small proportion of the total export turnover of the textile and garment industry," Viet said.

Regarding raw materials for production, Mr. Viet said that, currently, about 50% of textile enterprises which are mainly manufacturing and exporting enterprises, have been proactively preparing raw materials as some Chinese partners transferred some of the remaining material from the previous year. For another part of the raw materials, enterprises have shifted to import from Thailand at a 15% higher price.

Besides, the processing enterprises have not solved the difficulties in sources of raw material yet. Some enterprises have started letting workers rotate work-leave for maintaining production.

However, the ability to pay salaries for waiting jobs of enterprises can only be maintained for 2-3 months./.