Vietnamese companies have not made headway with several orders due to Covid-19 related complications.

The stay-at-home mandate under the prime minister’s directive 16 has significantly affected firms’ operations. They expect a probable shift of orders to other countries. Textile-garment makers in the southern localities have had to suspend their operations due to the resurgence of the coronavirus, thus making it tough to commit to business partners and, consequently, creating concerns among business partners about the disruption of their supply chain.

Some international garment brands have also sought permission to make payments in two or three months or even six months. This is beyond the original financial plans of local textile and garment firms. If local textile makers accept the request, they would face obstacles in rotating capital, as the access to long-term loans offered by local banks is currently challenging and risky. If they refuse the request for late payments, these brands would seek new business partners in other countries.

Exports of the local textile-garment industry in the first half of this year improved 21.27 per cent compared to the same period last year and up 4.23 per cent against the 2019 figure. Of this, the number of textile-garment items shipped to the European Union rose 4.85 per cent versus last year’s figure.

By Fashionating World
https://www.fashionatingworld.com/new1-2/virus-hinders-vietnamese-order-intake