US-China Trade War Impacts Vietnam’s Textile Industry
Viet Nam News highlights the country's decline in export and production with buyers seeing smaller and fewer orders due to the conflict.
HANOI, Vietnam-According to Viet Nam News, the prolonged U.S.-China trade war is affecting Vietnam’s textile industry. The news outlet highlights the country’s decline in export and production, with buyers seeing smaller and fewer orders due to the conflict.
The export of raw materials to China, which accounts for up to 60% of Vietnam’s total export volume, fell as China cut back on imports. Among the most affected was yarn.
“As the global yarn industry faces worsening prospects due to the ongoing trade war, competition among rival countries such as India, Indonesia, Pakistan, Thailand, and Vietnam has intensified,” says the Vietnam National Textile and Garment Group (VINATEXT) performance review.
According to Vi?t Nam News, businesses are struggling to acquire orders to maintain production. The current situation is unlike 2018 when there were enough orders to carry companies through the end of the year by September.
“A large majority of orders, if signed at all, were of small volume and short-term as customers were constantly on the look-out for new developments of the trade war. More and more Chinese orders have shipped to countries with better tax incentives such as Cambodia and Bangladesh,” says the Vietnamese newspaper.
VINATEXT vice president Treng Ven Cem worries the country’s textile industry won’t reach its export target of $40 billion.
The General Department of Customs says textile exports during the first three quarters of 2019 reached $29.2 billion, a 9.1% year-on-year increase.
Find more information by visiting http://vietnamnews.vn.
