The Impact Of Vietnam'S Textile Industry Is Urgent. 55-60% Comes From China.

Textiles are Vietnam's third largest export commodities after smart phones and electronic products, but they are highly dependent on the raw materials supplied by China. Since the outbreak of the new crown virus outbreak, the supply chain of Vietnam's textile and garment industry has been seriously affected. From the second quarter of this year, Vietnam's textile industry will face a serious shortage of raw materials.

The chairman of the Vietnam textile and Garment Association (VITAS), Wu De Jiang, said that the existing raw materials of Vietnam's local companies are only enough to maintain production until the end of March. If March is still unable to get enough imports from China, Japan and South Korea, many companies will face serious shortage of raw materials in April.

Wu Dejiang said that the supply of raw materials for Vietnam's textile industry 55-60% came from China, especially clothing raw materials, yarns, fabrics and so on, mainly imported from China. "At present, we do not know the extent of the impact of the new crown on Vietnamese textile production, but we expect production in the first quarter to be the same as last year."

On the other hand, in response to the shortage of raw materials due to the delay in the resumption of work in China's factories, VITAS organized a trade delegation to India to look for raw materials. Gao Guoxing, Vice Minister of Vietnam's Ministry of industry and trade, also suggested that India consider resolving Vietnam's difficulties in textile material sources when meeting with Vice Minister of industry and Commerce of India, Vadavan. But this is only a temporary measure for Vietnam to deal with the delay in the resumption of factories in China. If Vietnam wants to get rid of its dependence on China's raw materials, it will take a long time.

In recent years, because of the low labor cost in Vietnam, the textile export volume reached about 36000000000 US dollars in 2018, with a growth rate of 16.01%, and became the third largest exporter of textiles and clothing in the world, second only to China and India. This figure was 12.1%, 4.07% and 10.2% in 2015, 2016 and 2017 respectively. According to the development goal of Vietnam textile industry proposed by VITAS in the next 10 years, as of 2030, Vietnam's textile export volume should reach 850-900 billion US dollars, and 25-30 Vietnamese brands will be built and developed.

But in 2019, influenced by trade friction between the United States and China, Vietnam's textile and clothing exports amounted to only $39 billion, and the target of $40 billion was not achieved. In early 2020, Vietnam's textile and clothing exports dropped sharply, only 2 billion 600 million US dollars, down 21% from the same period last year. It is expected that the industry's target of exporting 42 billion to 42 billion 500 million dollars in 2020 will also be difficult to achieve.