The textile and garment industry is forecast to face difficulties in realising its export turnover target of 39 billion USD this year due to unprecedented severe impacts caused by the COVID-19 pandemic.

Hong Sheng Wen, Deputy General Director of Kwang Viet Garment Co., Ltd in the Mekong Delta province of Tien Giang, said that from July 15, 2021, the enterprise's production activities had to be suspended dueto the effects of the health crisis.

According to a report of the Vietnam National Textile and Garment Group (Vinatex), since June 2021, when the pandemic broke out in southern localities, production and business activities of garment firms have been facing numerous difficulties.

In just one month, over 40,000 workers, mainly in the southern region, were laid off.|

Besides the burden of responsibilities for their employees, textile enterprises have also faced risks related to economic contracts with their customers.

In the first 6 months of 2021, the textile and garment export value hit 15.2 billion USD, up 15 percent year-on-year. This is a good result in the context of COVID-19.

However, Chairman of Vinatex  Le Tien Truong said the achievements in the first half could completely be lost if creative solutions in  production and business are not implemented drastically.

He added that production disruptions can seriously affect supply chains and the lives of workers.

Secretary General of  the Vietnam Textile and Apparel Association (VITAS) Hoang Ngoc Anh said the textile industry will face many challenges in the remaining months of 2021.

The social distancing order will negatively affect business results of textile companies, she said, adding that the rate of factories suspending operations has reached 35 percent, she noted.

VITAS said the export turnover of the sector is predicted to reach 32-33 billion USD this year, equivalent to 84 percent the plan set, if the pandemic is under control in late August.

Textile enterprises are currently receiving many orders from US and the European Union, it added.

Source: VietnamPlus

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