India, Vietnam and other South and Southeast Asian countries have always been our important textile exporters. Textile people engaged in foreign trade have more or less customers and orders from these countries and regions.
In recent years, with the development of the textile industry in these countries, they have become our strong competitors internationally, and their market conditions are closely related to ours to some extent.
The outbreak of the epidemic in India and other places in September and October last year caused a large number of orders to return to China. In the third and fourth quarters, the domestic textile market ushered in a long-lost peak season. However, some time later this year, international orders returned to South Asia and Southeast Asia due to the use of vaccines.
Recently, the Delta virus has once again ravaged the world. What changes have occurred in the textile market in South Asia and Southeast Asia?
The epidemic situation is severe, and a large number of textile companies in Vietnam have suspended production
Vietnam is currently The epidemic has developed severely. A total of 19 provinces and cities have entered a state of movement restriction. The total number of confirmed cases nationwide has exceeded 150,000. The number of confirmed cases in Ho Chi Minh has also exceeded the 110,000 mark. In Vietnam, there have been more than 7,700 new cases in 41 provinces and cities in the past 24 hours. . The number of provinces in Vietnam with confirmed cases is on the rise, which is directly related to the large number of workers returning home from Ho Chi Minh City.
Affected by the epidemic, 97% of textile companies in South Vietnam have suspended production. Most factories will suspend operations from 0:00 on July 15th in the first wave. They must wait until the “three conditions” are met. “Principle”, work can be resumed only after local production, local eating, and local rest have been inspected and approved by officials from the local disease control bureau. Although export orders for the Vietnamese textile industry have been received in the third quarter, companies are currently struggling to strike a balance between production activities, ensuring employee employment, and earning profits.
Requiring brand customers to delay payment for 2-3 months or even 6 months is beyond the capacity of the company. Moreover, in the face of the huge risks brought by the increasingly complex epidemic, some brand customers have moved their orders out of Vietnam, and there is even a trend of returning to the Chinese market.
With the bankruptcy of the “local principle”, more and more companies are no longer able to bear the huge cost burden and pressure of epidemic prevention, so they can only suspend production and close their doors and send their employees home. This will result in a large number of unemployed people with nowhere to live, and Vietnam’s social stability will also face tremendous pressure.
Factories in India and Bangladesh are shut down, and clothing orders are lost in large quantities
India Tirupur, a city in the southern state of Tamil Nadu, is an important base for garment production in India. There are more than 17,500 local garment companies. 60% of the knitted garments in India are produced here, as are many multinational apparel fast-moving consumer goods. Processed here. International garment companies launch new styles of clothing every month, and garment factories need to closely coordinate with order requirements. After the second wave of the COVID-19 epidemic in India, Indian garment factories have been unable to meet customer requirements for more than three months, which may ultimately lead to long-term losses. International customers.
According to Indian media reports, due to the epidemic, some multinational clothing retailers have moved 15-20% of their orders to other countries. During the second wave of the COVID-19 epidemic, the city’s garment industry lost at least about 100 billion rupees, or about 8.7 billion yuan. India’s apparel industry provides approximately 12 million jobs. Industry insiders in India said that the blockade has had a huge impact on the manufacturing industry.
Bangladesh has also been deeply affected by the epidemic. The local government decided to implement a nationwide blockade policy on the country’s textile and clothing industry on July 23 after Eid al-Fitr. Things are complicated because the blockade period coincides with 40% of Bangladesh’s annual textile exports; orders for the 2021/22 autumn and winter series began to be delivered around May. Compared with the same period in 2020, Bangladesh’s export volume increased by about 12%.
The blockade may cause some customers in the industry to transfer orders, but there is no other region to transfer except China, where manufacturing costs are higher. Although the governments of Cambodia and Thailand have not yet implemented blockade policies on the industry, as far as is known, larger exporting countries such as Vietnam and Indonesia have begun to implement safety restrictions in response to the epidemic. Due to the new wave of epidemics and the lingering problem of container shortages, Chittagong Port in Bangladesh and Indian ports are facing severe cargo accumulation and serious port congestion.
Under the impact of the new virus, the textile industries of major textile countries such as India, Vietnam, and Bangladesh have almost come to a standstill, which is relatively good for my country’s domestic textile market. Strict domestic epidemic prevention and control and a complete textile industry chain mean that stagnant textile orders from these countries and regions can only be transferred to our country. At present, some orders from India and other Southeast Asian countries have begun to return to my country, and domestic textile, chemical and other industries have brought about a surge in the number of orders. </p
