The Ho Chi Minh City Textile and Garment-Embroidery Association said the number of garment business orders in the city has dropped to 40 percent compared to last year’s same time. Because of the effects of the COVID-19 pandemic, conventional clothing industry markets such as the US and Europe, which account for up to 70-80 percent of Vietnam ‘s clothing exports, were nearly paralyzed while the number of orders from the Asian region was small. Many garment enterprises have not received high-value orders, including suits and high-class shirts, while face masks and protective clothes, which are considered as life-saver for many enterprises, have seen sharp decreases in their prices due to excessive supply worldwide.
If the situation doesn’t change early, according to estimates, there will be about 60-70 percent of micro and medium-sized enterprises facing the risk of shutting down. Vietnam Textile and Apparel Association (Vitas) Chairman Vu Duc Giang said the COVID-19 pandemic has triggered a change in consumer culture as people have shifted spending on essential goods rather than placed too much focus on shopping as before. Most textile businesses are returning to the domestic market to maintain their survival, but domestic demand is also low because people are spending tightening up. According to the Ministry of Industry and Trade, textile production rose by 1.8 per cent in the first seven months of the year, clothing production dropped by 4.6 per cent compared to last year. Garment and clothing export turnover was reported at US$ 16.18 billion in the first seven months, down 12.1 per cent; fabrics and yarns of all kinds dropped 20.9 per cent during the same period last year. The industry’s overall export turnover this year is expected to be around $32.75 billion , down 16 per cent from last year.