Coronavirus may cost apparel sector VND11 trillion

31-Mar-2020 Intellasia | The Saigon Times | 6:02 AM Print This Post

The local apparel sector is expected to lose VND11 trillion in revenue if Covid-19, the disease caused by the coronavirus, is contained by late May and the economy recovers in June, Vietnam Textile and Garment Group (Vinatex) said at a teleconference on March 25.

Since mid-March, a number of orders have been canceled or suspended, resulting in multiple textile and garment firms to scale down or stop production in April and May this year, the local media reported.

Major brands are facing more cancellations of orders than small ones and there are no signs of recovery, according to Vinatex.

This is likely to pose financial and labour challenges for textile and garment firms, Vinatex stressed.

Many firms will lose solvency by end-April and the number of jobless labourers operating in the apparel sector will rise by 30%-50 percent in April and May if no measures are adopted, Vinatex added.

Besides this, the textile and garment sector imports some $1.5 billion worth of materials each month, leading to a large inventory of materials as multiple orders have been canceled.

Speaking at the teleconference, Vinatex also proposed producing face masks and surgical suits, applying flexible working hours and reducing working hours to 32-40 hours per week to survive the coronavirus pandemic.

Vinatex will also propose the National Assembly, the government and the relevant ministries and departments allow the export of face masks and protective gear, apart from asking banks to extend debt payment deadlines.

https://english.thesaigontimes.vn/75735/coronavirus-may-cost-apparel-sector-vnd11 trillion.html

 


Category: Business, Vietnam

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