Vietnam’s insufficient imports of Chinese raw materials cause production difficulties

Vietnam's insufficient imports of Chinese raw materials cause production difficulties

Textiles are Vietnam’s third-largest export commodity after smartphones and electronics, but they rely heavily on raw materials and accessories provided by China to operate. Since the outbreak of the new crown pneumonia in China, Vietnam ’s textile and apparel supply chain has been severely affected. From the second quarter of this year, Vietnam ’s textile and apparel industry will face a serious shortage of raw materials.

Vietnam Textile and Apparel Association (VITAS) Chairman Wu Dejiang said that the current raw materials of local Vietnamese companies are only enough to maintain production until the end of March. If March still cannot get enough imports from China, Japan and South Korea, many companies will start in April Facing the serious shortage of raw and auxiliary materials, many textile and apparel manufacturing enterprises are afraid that they will be “potless without rice.”

Baan Thu Duc Jiang said that 55% to 60% of the raw and auxiliary materials supply of Vietnam’s textile industry comes from China. In particular, raw materials, yarns, and fabrics for clothing are mainly imported from China. According to Vietnamese media reports, due to the closure of Chinese factories affected by the epidemic, Vietnamese textile and footwear product manufacturers have difficulty importing raw materials from China. Some of the factory’s raw material inventory has been used up, and some can last for months, and some can only last for months. The Vietnam Textile and Apparel Association recommends that manufacturing companies turn to other import sources, but the reality is that in addition to China, Vietnamese companies have a narrow range of choices for importing raw materials.

In order to cope with the shortage of raw and auxiliary materials caused by the delay in the resumption of work at Chinese factories, the Vietnam Textile and Clothing Association organized a business delegation to India to seek raw and auxiliary materials. While meeting with Vice Minister of Industry and Commerce Vadawan, the Deputy Minister of Industry, Trade and Industry of Vietnam, Gao Guoxing, had also proposed that India consider resolving Vietnam’s difficulties in sourcing textile materials. But this is only a temporary measure for Vietnam to respond to the postponed resumption of work at Chinese factories. It will take a long time for Vietnam to get rid of its dependence on Chinese raw materials.

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