Vietnam: Insufficient Imports Of Raw Materials And Textile And Garment Exports

According to the Vietnam cotton yarn Association, Vietnam imported 81 thousand tons of cotton in January 2020, a decrease of 20.4% compared to the same period, a decrease of 41.8% over the same period last year. Fiber and yarn imports 73 thousand tons, a decrease of 27.7%, a decrease of 21.6% over the same period last year.

In January, Vietnam's yarn export volume was 107 thousand and 900 tons, a decrease of 34.3% compared to the same period, a decrease of 22.2% over the same period last year. Exports of textiles and clothing amounted to $24 billion 700 million in the same month, a decrease of 16.9% compared to the same period, a decrease of 25% over the same period.

Data show that in January Vietnam's textile and clothing exports totaled $3 billion 50 million, a decrease of 14.5% compared to the same period, a decrease of 21.2% over the same period last year. Vietnam's textile and clothing exports are mainly affected by the Spring Festival holidays. Meanwhile, the outbreak of China's new crown virus caused the textile industry to postpone the resumption of work in China, and the demand for short-term imports dropped significantly.

According to the Vietnam cotton yarn Association, although Vietnam's textile and clothing exports have not been affected by China's epidemic situation too much, because the products are mainly exported to China, the raw materials of Vietnam textile enterprises are mostly from China. The slow recovery of China's textile industry is bad for its raw material procurement, and the shortage of raw materials will also affect exports.

Vietnam's textile and footwear manufacturers are unable to import raw materials from China, and some factories have run out of raw materials, some of which can last for weeks, some of which can last for several months, according to Vietnamese media reports. Vietnam textile and Apparel Association suggests that production enterprises turn to other import sources, but the reality is that besides China, Vietnamese enterprises have a narrow selection of raw materials.

Statistics show that in 2019 China accounted for 60% of Vietnam's clothing imports, accounting for 55% of fiber imports. The outbreak of the new crown virus may have a negative impact on 10 main industries in Vietnam, including the textile industry. According to statistics from Vietnam Statistics Department, in January this year, Vietnam's imports of textiles to China amounted to 950 million US dollars, down 18.1% from the same period last year, and Vietnam's total textile exports decreased by 21%, to 2 billion 600 million US dollars, of which footwear exports decreased by 9.7% to 1 billion 600 million US dollars.