Textile and garment exports are unpredictable because of Covid-19

VCN - Talking to a reporter from Customs Magazine, Hoang Ngoc Anh, General Secretary of the Vietnam Textile and Apparel Association (Vitas), said difficulties caused by the Covid-19 pandemic hindered textile and garment firms to meet export orders.
Hoang Ngoc Anh, General Secretary of the Vietnam Textile and Apparel Association (Vitas)
Hoang Ngoc Anh, General Secretary of the Vietnam Textile and Apparel Association (Vitas)

What are difficulties faced by textile and garment firms in organising production due to the complication of the Covid-19 outbreak nationwide?

The first difficulty to be dealt with is pandemic prevention. Previously, Decree 82/2018/ND-CP on the management of industrial parks and export processing zones did not allow residents to live in industrial parks or export processing zones so there are no residences for employees to stay in after working hours. However, to apply the three-on-site working production, only textile firms with the characteristic of small workforce and a large number of machines are possible to flexibly apply the method of downsizing the factory size for room to produce. Meanwhile, garment firms with a large number of employees, especially those with a scale of 1,000 employees cannot afford for a long time, especially for basic needs such as bathing, personal hygiene, and safety management.

It is unpredictable how long the application period "3 on the spot" will last so businesses cannot take the initiative for anything, including receiving more orders or predicting the reactions of workers after being quarantined for a long time.

On the other hand, up to 60-70% of employees do not agree to stay at the company due to the fear of bacterial cross-contamination. Many businesses wonder if these employees are entitled to State subsidies according to Resolution 68/NQ-CP dated July 1, 2021 on policies to support employees and employers in difficulties caused by the Covid-19 pandemic and Decision No. 23/2021/QD-TTg dated July 7, 2021 on the implementation of policies to support employees and employers facing difficulties due to the Covid-19 pandemic.

From this perspective, Vitas has proposed the State include these workers in support under Resolution 68, because if it is applied according to Clause 2, Article 99 of the Labour Code (no salary for stopping work), workers will suffer more difficulties, while the disease is spreading dangerously, the fear of workers is acceptable. Meanwhile, most firms are currently incapable of paying severance salary (applicable under Clause 3, Article 99 of the Labour Code).

In addition, many businesses located in blocked and isolated areas have to let their workers quit or relax. Due to huge delivery demands, firms have to arrange overtime right after reopening. However, Article 107 of the Labour Code stipulates that overtime work “is not allowed to exceed 40 hours in a month”. Therefore, Vitas proposed that the State allow firms, after the blockade period, to arrange overtime work beyond the above regulations to handle backlog orders. Firms will still offset the months to ensure no more than 300 hours/year as set in Clause 3, Article 107.

On July 29, the Government Office issued Official Letter No. 5187/VPCP-CN on facilitation of goods transportation during the Covid-19 pandemic, removing many obstacles in the circulation of goods. Does Vitas have any further recommendations or suggestions?

Vitas proposed the provision of QR code on the "green stream" should be abolished nationwide. Besides, the association also proposed to remove the regulation that only essential goods can be circulated, instead allowing the circulation of goods as in normal conditions if ensuring pandemic prevention, except for prohibited or restricted goods in accordance with regulations. This content was also proposed by the Ministry of Industry and Trade on July 27. Because the implementation of "dual goals" means export goods, imported raw materials and accessories can’t be circulated are also have to be dealt with at the same time.

How are Vietnamese fashion and textile industries coping with such difficulties in meeting orders of textile firms in particular, the export situation of the industry in general?

Industries like textiles and garments, leather and footwear contribute greatly to export turnover, and at the same time to the social security system because of the large number of vacancies. In the first half of this year, the textile and garment export gained considerable results, but in the coming time, it is not clear what the situation will be.

As the matter of fact, most brands accept business failures to complete orders for objective perspectives but in the long term if there are no changes and the production chain is continually broken, the key partners will gradually shift to other markets.

Does the association deliver any more recommendations to facilitate smoother production and export for garment and textile firms in the near future, madam?

The prerequisite is still the vaccine because the nature of the impact of the Covid-19 pandemic on businesses in 2021 is completely different from the impact in 2020.

Currently, the whole political system of Vietnam is actively fighting against the pandemic. However, with new variants of Covid-19, the fundamental solution is that workers and people must be vaccinated as quickly and as much as possible.

Therefore, Vitas proposed that the State should give priority to workers in firms to be vaccinated early (can be considered on the basis of firms at their own expense) to ensure the safety of workers and so that firms can soon return to stable production and business activities. At the same time, special priority should be taken to the driver team to ensure the circulation of goods to serve people's essential needs and ensure production, not to disrupt the supply chain.

By Thanh Nguyễn/Minh Phương

Related News

“Greening” the textile, garment and footwear industry: Motivation from challenges

“Greening” the textile, garment and footwear industry: Motivation from challenges

VCN - Vietnam's textile and footwear industry is facing great pressure to satisfy more demanding requirements from international brands and national commitments on emission reduction while the input material and production costs are escalating.
The Government adjust import and export tariff rate on certain goods

The Government adjust import and export tariff rate on certain goods

VCN - On November 1, 2024, the government issued Decree 144/2024/ND-CP, amending and supplementing certain provisions of Decree 26/2023/ND-CP on the export tariff schedule, the preferential import tariff schedule, tariff nomenclature, and the fixed duties, mixed duties, and out-of-quota import duties.
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs seeks solutions to promote import and export

VCN - Quang Ninh Customs Department has made efforts to synchronously deploy solutions to accompany, support and resolve difficulties for businesses, contributing to improving import and export activities through the area.

Latest News

Chemical companies go green to compete effectively

Chemical companies go green to compete effectively

VCN - Chemical and fertilizer production are industries with high emissions and energy usage, making the Green standard particularly stringent for them.
To open the door for industrial processing and manufacturing products to demanding markets

To open the door for industrial processing and manufacturing products to demanding markets

VCN - Vietnam's processing and manufacturing industry has made strong progress in 2024, with positive growth and becoming the main driving force of the economy. However, to maintain growth momentum and expand market share in demanding markets, businesses need to address challenges in quality standards, raw material costs and strict compliance requirements from international partners.
Vietnam- the Philippines trade reaches nearly US$6.5 billion after 9 months

Vietnam- the Philippines trade reaches nearly US$6.5 billion after 9 months

VCN - In the first nine months of 2024, the total two-way trade turnover between Vietnam and the Philippines reached nearly US$6.5 billion, an increase of over 20% year-on-year.
Vietnam's pepper exports down in volume, but surge in value

Vietnam's pepper exports down in volume, but surge in value

Vietnam's pepper exports saw a 1.9% year-on-year decrease in volume but a significant 48% increase in value thanks to higher prices in the first 10 months of 2024, according to the Vietnam Pepper and Spice Association (VPSA).

More News

Vietnam’s e-commerce sector grows 18%

Vietnam’s e-commerce sector grows 18%

Vietnam’s e-commerce market is estimated at 22 billion USD this year, ranking third in Southeast Asia behind Indonesia (65 billion USD) and Thailand (26 billion USD).
Vietnam draws new wave of high-value investments: Savills

Vietnam draws new wave of high-value investments: Savills

Vietnam’s industrial and digital sectors are experiencing a strong growth, fueled by a surge in foreign direct investment (FDI) inflows, large-scale infrastructure projects, and a favourable legal environment, according to Savills Vietnam.
Plastic exporters focus on recycling technology transformation

Plastic exporters focus on recycling technology transformation

VCN - Vietnam's plastic industry is facing significant challenges related to plastic waste and the demand for recycling. Huynh Thi My, Secretary General of the Vietnam Plastics Association, shared important insights on the transformation efforts by plastic businesses to meet the growing export demands.
How is Vietnam-US trade under two Trump elections?

How is Vietnam-US trade under two Trump elections?

VCN - In the first nine months of 2024, Vietnam-US trade reached nearly US$100 billion, nearly three times higher than the same period in 2016 - the first year Donald Trump was elected President of the United States.
Investment funds eye Vietnam

Investment funds eye Vietnam

Several large foreign investment funds are considering expanding investments in Vietnam to capitalise on the country’s rapid socio-economic development and green transition.
Export turnover of computer, electronic products and components reaches over US$ 55 billion

Export turnover of computer, electronic products and components reaches over US$ 55 billion

VCN – As of October 15, the export turnover of computers, electronic products and components earned US$ 55.3 billion, the General Department of Vietnam Customs (GDVC) reports.
Positive outlook for pangasius exports in the final months of the year

Positive outlook for pangasius exports in the final months of the year

VCN - With growth in pangasius exports to multiple markets showing positive trends, businesses are forecasting an optimistic outlook for exports in the final months of the year.
Processing-manufacturing accounts for over 64% of new FDI

Processing-manufacturing accounts for over 64% of new FDI

The processing and manufacturing sector took the lead in attracting foreign direct investment (FDI), accounting for 64.2% of the 27.26 billion USD recorded as of October 31, according to the General Statistics Office.
Foreign investment disbursement hits 19.58 bln USD in 10 months

Foreign investment disbursement hits 19.58 bln USD in 10 months

Disbursement of foreign investment reached about 19.58 billion USD in the first 10 months of this year, up nine% year-on-year, a report from the Ministry of Planning and Investment's Foreign Investment Agency (FIA) has shown.
Read More

Your care

Latest Most read
Chemical companies go green to compete effectively

Chemical companies go green to compete effectively

Chemical and fertilizer production are industries with high emissions and energy usage, making the Green standard particularly stringent for them.
To open the door for industrial processing and manufacturing products to demanding markets

To open the door for industrial processing and manufacturing products to demanding markets

VCN - Vietnam's processing and manufacturing industry has made strong progress in 2024, with positive growth and becoming the main driving force of the economy. However, to maintain growth momentum and expand market share in demanding markets, businesses
Vietnam- the Philippines trade reaches nearly US$6.5 billion after 9 months

Vietnam- the Philippines trade reaches nearly US$6.5 billion after 9 months

VCN - In the first nine months of 2024, the total two-way trade turnover between Vietnam and the Philippines reached nearly US$6.5 billion, an increase of over 20% year-on-year.
Vietnam's pepper exports down in volume, but surge in value

Vietnam's pepper exports down in volume, but surge in value

Vietnam's pepper exports saw a 1.9% year-on-year decrease in volume but a significant 48% increase in value thanks to higher prices in the first 10 months of 2024, according to the Vietnam Pepper and Spice Association (VPSA).
Vietnam’s e-commerce sector grows 18%

Vietnam’s e-commerce sector grows 18%

Vietnam’s e-commerce market is estimated at 22 billion USD this year, ranking third in Southeast Asia behind Indonesia (65 billion USD) and Thailand (26 billion USD).
Mobile Version