Industry And Cluster | News & Insights

Vietnam – Garment manufacturing is expected to slow during Covid-19

Published: June 22, 2021
Author: Manali bhanushali

The textile and clothing industry is expected to be damaged as the Covid-19 situation in Vietnam becomes more complicated. According to industry sources, the pandemic scenario in HCMC would drag the sector down in the last months of the year.

According to Pham Xuan Hong, president of the HCMC Association of Garment, Textile, Embroidery, and Knitting, the epidemic has already spread to several industrial parks in HCMC, so if employees of garment and textile enterprises become infected, work would cease and order fulfilment will be slowed (AGTEK).
Because garment and textile factories are labor-intensive, with many workers concentrated in specific areas, the risk of Covid-19 breaking out in factories is very high, according to Le Tien Truong, chairman of the Vietnam National Textile and Garment Group (Vinatex), who also predicted that the production chain would be disrupted as a result of the outbreak.
Vinatex employs 150,000 people across the country, with most of its affiliates employing 2,000 people on average.
No Vinatex affiliates reported any Covid-19 infection in the first three rounds of Covid-19. Some businesses in the northern province of Bac Ninh and the central city of Da Nang have reported infected staff as part of the current fourth wave.
Chairman of Vinatex Goods delivery will be delayed if production is halted due to Covid-19. The majority of clothing and textile companies have stated that they will fund all vaccine costs. In the first five months of this year, Vietnam’s textile and apparel exports totaled $5.8 billion.

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