Currently, the number of people infected with COVID-19 continues to rise in many countries. The number of confirmed cases in South Korea exceeds 3,000, Japan has nearly 1,000, Italy has nearly 900, Iran has nearly 400, and the United States, Germany, France, Iceland, Monaco Park, Mexico and other countries have all been spared…
Vietnam’s textile industry is in urgent need of materials
As the epidemic spreads globally, Vietnam, which once dreamed of becoming the “world’s factory”, has become a hot search topic.
According to the Vietnam Textile and Apparel Association (VITAS) on February 25, because the country’s textile industry is highly dependent on China’s raw and auxiliary materials – 55-60% of the supply of raw and auxiliary materials comes from China, especially Clothing raw materials, yarns, fabrics, etc. are mainly imported from China. However, due to the impact of public health emergencies, the resumption of work of some factories in China has been delayed, so the supply chain of Vietnam’s textile and garment industry has been seriously affected.
The association pointed out that the current raw materials and auxiliary materials of local Vietnamese companies are only enough to maintain production until the end of March. If they still cannot obtain sufficient imports from major markets such as China in March, many companies will start from April. Since March, we have faced a serious shortage of raw materials and excipients.
Due to its superior geographical location and cheap labor, many companies in Vietnam have transferred orders and factories in recent years. I went to Vietnam, which has become a popular investment hotspot. However, Vietnam’s infrastructure is weak and production efficiency is low. Many raw materials have to be imported from other countries, especially China. These shortcomings became apparent when the epidemic broke out. Out. As a major manufacturing country in the world, China has an advantage, especially in terms of raw materials. It can be seen from the serious shortage of goods in Vietnam that the rigid demand for Chinese textiles in the foreign trade market still exists, and Chinese textiles cannot be replaced by other countries in a short period of time.
Foreign trade market demand still exists
During the extended holiday, China Silk City Network once made a report on foreign trade orders According to market research on whether orders have been canceled due to the epidemic, there are indeed cases where orders cannot be issued on time due to the epidemic, but only a very small number of cases. Most foreign trade customers did not cancel their orders, but chose to wait.
The epidemic has indeed had an impact on my country’s textile exports. Major airlines have canceled flights to and from China, causing difficulties in the transportation of textile exports. However, when asked whether they would turn their foreign trade to domestic sales due to the severe foreign trade situation, most business owners said they would not. This is only a phased situation, as China’s textiles have a deep foundation and play a decisive role in foreign markets. , we have also established good cooperative relationships with customers over the years, and the company is still full of confidence in foreign trade.
A cloth boss who specializes in four-sided elastic said: “During the epidemic, foreign customers did not cancel orders, they were also waiting and watching. Although the epidemic has had an impact, there is no need to switch to domestic trade. Many orders were signed years ago and generally will not be changed easily. The epidemic has only caused our sales to fall short of expectations and not meet our expectations, but we still feel that there will be retaliatory consumption in the future.”
Another cloth boss who has been working hard in the foreign trade market for many years also said that because of many years of foreign trade, customers still trust him very much. After the year, he has received two or three foreign trade orders, and now the dyeing factory is gradually restoring production capacity. , I keep an eye on it every day, while also communicating with customers, asking them to understand the current situation of the Chinese textile market, and hoping that the dyeing factory can ship goods as soon as possible.
Indeed, in response to this sudden epidemic, domestic product exports have been restricted, but after visiting, it is not very common for orders to be canceled because foreigners cannot find suitable products in the short term. Suppliers, and the current epidemic has spread across the country, and domestic competitors are in the same situation. Southeast Asia is not yet at our level. The severe shortage of raw materials in Vietnam is a good example.
Dyeing factory production capacity is slowly recovering, and delivery times are extended
At present, the weaving market has gradually resumed work, and production capacity has also been reduced. Slowly improving, according to statistics from the China Silk City Network, the current loom operating rate in Shengze has increased to about 45%. Later, as workers gradually return to work, the operating rate of looms will return to normal, and gray fabric shipments will also improve significantly.
The weaving end has begun to recover, and now the market is most concerned about the printing and dyeing end.
Now weaving companies have begun to resume work.Dyeing factories have begun to receive orders intensively, and the number of gray fabrics entering warehouses has greatly increased, with more than 10,000 meters of gray fabric being purchased every day. However, at present, due to the unsatisfactory situation of dyeing factory workers resuming work, the production capacity recovery rate of most dyeing factories is only 50-70% of the past, or even lower. Most of the orders placed before the year were not cancelled, but were only backlogged for a long time. In addition, there was a concentrated outbreak before the holiday before the year, and with the orders placed after the year, the dyeing factory became even more crowded, and the delivery date problem became “Nowhere in sight”.
Dyeing factory shipments are slow. Even if international logistics is slowly recovering, textiles cannot be shipped abroad normally. Although Southeast Asian countries like Vietnam have sufficient labor advantages, their infrastructure and technical level are weak, especially in terms of raw materials, many of which need to be imported from China. Chemical fiber raw materials and gray fabrics are their weakest links.
At the time of the global epidemic, it seems that it will take some time to wait for the import of Chinese textiles. But it is not difficult to see that the foreign trade market demand for China’s textiles is still very strong. After the epidemic, foreign trade orders may be concentrated.
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