Textile exports fell 80%! 42,904 factories shut down, who took away Vietnam’s textile orders?

Vietnam’s development momentum in the past few years, and even rumors claim that Vietnam will become the new factory of the world.
But the current development of Vietnam’s real situation may be a big difference with everyone’s imagination, this year, Vietnam’s development has come to a standstill. The export business, which we were so proud of before, has become a roadblock to Vietnam’s economic development. We can not deny that the current global economy has entered a bottleneck, many developed countries demand for goods is not as strong as before, which makes the export trade of all countries have been affected to varying degrees.

Among them, Vietnam is probably the most affected. It is no coincidence that Vietnam is currently facing another electricity shortage, which has once again added to its economic woes. Now there are more and more rumors about Vietnam’s economy, which reflects that everyone is very concerned about Vietnam’s economy. Now the Vietnamese side and announced that textile exports decreased by 80%, so what exactly is the reason, so that Vietnam’s economy appeared on ice and fire, and in the end, which country in the process of replacing Vietnam?2023 is a crucial year for the world’s major economies, countries are now introducing policies to stimulate economic recovery.

Therefore, the first degree of this year’s economic data is of great concern, according to the data released by the Vietnamese side, the first quarter of textile exports into a massive downward trend, the overall amount has been sharply reduced by 80%. In Vietnam’s economic structure, textile exports accounted for a large proportion of domestic and a large number of textile enterprises. Now the industry’s exports are in trouble, which has led to 42,904 enterprises facing shutdown. The situation faced by Vietnam has also made countries sigh with regret, and we have been speculating on the reasons for the setback in Vietnam’s exports.

According to relevant data, the first quarter of this year, Vietnam’s overall foreign trade exports fell seriously, including the textile industry, the most serious setback in exports. Combined with a variety of data, the current textile industry in Vietnam suffered a serious setback, mainly due to insufficient external orders. Before Europe and the United States has always been an important market for Vietnamese textile companies, but Europe and the United States is now very limited demand, a large number of European and American companies did not give orders to Vietnam. Especially now is the European Union orders, but even fewer, which makes many Vietnamese textile companies anxious.

In fact, the situation before the end of last year, the EU orders are very limited, when a lot of enterprises in Vietnam, because there is no order, has faced a shutdown. The Vietnamese side at that time originally thought that in 2023 there will be relief, but the fact is that this year, the EU textile orders for Vietnam is even less. Now the entire textile industry in Vietnam is facing the situation that a large number of enterprises are in the shutdown, related textile industry workers are unemployed at home. The textile industry is an important part of Vietnam’s economic structure, with a large number of people working in the industry.

Now some people are unemployed at home, on the whole of Vietnam’s economic growth caused a huge impact. And it will eventually form a chain reaction from the garment industry to other industries. As expected, many non-textile companies have also begun laying off employees to reduce operating costs. Now about Vietnam’s economic setbacks, a number of media began to report, in which we should pay particular attention to the Japanese media analysis. According to the Nihon Keizai Shimbun, the main reason for the current setback in Vietnam’s economic development is still their over-reliance on export trade.

Europe and the United States has always been Vietnam’s heavy customers, but the current economy of Europe and the United States itself has problems, coupled with the global economic development has also stagnated, the world’s major economies, the decline in spending power. For those countries that rely on foreign trade exports, is a huge blow, so Vietnam will naturally be affected. It is also important to note that the actual capacity of Vietnamese industrial workers is still a big gap with the outside world. The reason why many overseas companies choose to settle in Vietnam, in fact, we mainly focus on Vietnam’s labor prices are cheap. However, according to relevant industry insiders, a large number of foreign investment in Vietnam, but suddenly found and their own imagination and a large gap. Previously, foreign investment in China, China’s industrial workers excellent working ability, has been recognized. But the overall capacity of Vietnamese industrial workers can not, many foreign investors found in the entire production process, product quality and quality control can not be guaranteed. Most importantly, many factories in Vietnam are now labor-intensive.

These factories have a characteristic, workers are often required to work overtime to meet the capacity, but Vietnamese workers are not willing to work overtime. Many foreign-funded enterprises have concluded that although the price of Vietnamese workers is cheap, but the actual cost of labor is very high, resulting in rising product costs. There are some people are speculating that the current export restrictions in Vietnam, is not a lot of orders are flocking to China. But the real situation is that now is a large number of Southeast Asian countries, to undertake the orders of Vietnam.
The main reason is still last year, Vietnam, they prevented the epidemic work caused by the second half of last year, the Vietnamese authorities for epidemic considerations, a large number of factories shut down. At this time, holding orders in Europe and the United States enterprises naturally can not wait until the resumption of work in Vietnam, can only send orders to other countries, which Southeast Asia has assumed a large number of orders. Vietnam’s economy is currently facing problems is the decline in foreign exports, the local market is very limited, and many of the problems are very difficult to overcome. Only to find a suitable path for their own development, in order to usher in another wave of economic development opportunities.