Many US and European Union (EU) partners have sent notices to Vietnamese garment and textile businesses informing they will temporarily stop receiving goods for three to four weeks. Ph?m Xuan Hong, Chairman of the HCM City Association of Garment Textile Embroidery and Knitting says, nearly two-thirds of the garment-textiles market narrowed with this. Half of all textile exports from HCM City go to the United States, while the EU accounts for 15-18 per cent of annual exports.

According to chairman of Viet Thang Jean Ph?m Van Viet, the Chinese experience shows it will take at least two months in the United States and EU to control the pandemic. The United States accounts for 30-35 per cent and the EU 20 per cent of the company's total export turnover. About 40 per cent of existing fabrics will be abandoned or sold at low prices, he said. Suddenly stopping imports forced enterprises to store many containers of products that were on the way to US and EU ports, he said, which will increase expenses, according to a Vietnamese media report.

The most urgent problem for textile enterprises is not delivery of orders but how to protect workers. Textile enterprises in the country have suggested the government to quickly disburse approved economic stimulus packages and consider partial use of the unemployment insurance fund and social insurance fund to help businesses continue paying their workers.

They also hope the ministry of finance and the banking system will lower interest rates or give interest-free loans, which could be used to pay workers until production activities and trade return to normal.

India’s $108-billion textiles industry, which helps the likes of Gap and Macy’s stock their store shelves, is seeking a bailout package on their foreign exchange liabilities after the lockdown prompted cancellation of orders that were to fetch payments in dollars.

Losses in forex contracts could run into crores of rupees for the exporters that had used anticipated dollar receivables to enter into contracts with banks. To cover the hedging liabilities, the industry is seeking benefits similar to the moratorium extended to borrowers, who now have a three-month grace period on repayments.

Textile exporters book forward contracts against overseas receivables to protect their cost or to earn premiums. On shipment, they provide documents to banks booking the contracts. Due to cancellation and delays, they are unable to provide the bill of lading and other documents.

If exporters are not able to ship, they do not receive the money from overseas buyers. In such cases, they have to unwind those forwards deals booked up to six months in advance at a loss of 2-4 rupees/unit of dollar, dealers said.

Abhishek Goenka, CEO of IFA Global points out textile exporters should be given some flexibility to manage their dollar delivery in the form of some extensions so they do not have immediate cash flow problems considering (that the lockdown is) no fault of theirs.

Sri Lanka’s apparel sector has turned factories to make mask and protective equipment for frontline workers who are fighting against COVID-19, though tight controls are making it difficult to keep factories running. At the moment the industry is making one million pieces of safety suites through JAAF for people who are working frontline of COVID-19 treatment. However, production halted after police asked some factories to close and workers were not allowed to report to work at others.

The fabric for mask production had been donated by Teejay Lanka, a local knitted fabric manufacture, while the HDPE polythene to produce coverall protective suites were donated by PolyPack, a Sri Lankan plastic products maker. In addition, a number of factories are working with the government to supply in a number of protective cover all garments made out of HDPE polythene, again being provided free of charge to the Government for use in state hospitals. The raw material for this project has been donated Polypack.

However, the industry is not looking at exporting at the moment due to workforce shortages meanwhile the government tightens its Island wide curfew.

The American Apparel and Footwear Association (AAFA) has welcomed US Senate approval of a S$2 trillion war chest which will ease the hardship felt by businesses across the country since the outbreak of the COVID-19 which is now rampant in the states.

An estimated 3.3 million people filed for unemployment in the USA last week alone as it reels from a surge in virus cases and a huge hit to its economy. Senators have now agreed to the terms of a new bill which will provide direct payments of $1,200 to millions of individuals who earn $75,000 or less, and an additional $500 per child. Whilst $500bn is set aside to help companies via a loan system and $350bn has been designated to support small businesses.

AAFA has urged the US President to swiftly approve the bill – an action Trump has already affirmed that he will – to alleviate the strains felt on business owners and employees across the country.

This legislation will inject liquidity into the system allowing companies to sustain operations, and keep employees on the payroll so they start up quickly once health authorities give us the all clear.

Broken down, the bill – passed following a brief hiccup as Democratic and Republican Senators squabbled over unemployment benefits – will alleviate some of the financial burden left on the doorsteps of individuals paid under US$75,000, which will now be afforded a monthly pay packet of US$1,200 until they’re able to resume work.

UBS analysts say Nike Inc. shoppers who couldn’t get to stores that were shuttered by the pandemic flocked to e-commerce channels during the fiscal third quarter. The brand’s digital earnings accounted for about 20 per cent of the company’s overall business, with digital sales rising 36 per cent on a currency-neutral basis during the fiscal third quarter.

In China, while people were isolated at home, Nike weekly active users on its activity apps increased by 80 per cent by the end of the quarter versus the beginning. Digital business in China grew 30 per cent. Nike has $5.5 billion in liquidity, accounting for just 14per cent of calendar 2019 sales. In comparison, Ralph Lauren’s 6.30 per cent or $2.4 billion, but that accounted for 38 per cent of last year’s sales.

UBS suggests t Nike will be in an even stronger competitive position when the Covid-19 situation ends versus our prior view. The brand is operating from a position of strength s demand remains strong. As Raymond James analyst’s reveals coronavirus is encouraging a majority of its consumers to shift ito digital channels.

Mothercare has substantially completed its transition to refocus on brand management and design, development and sourcing of product for its global franchise partners. In the UK, many head office staff are working productively from home but a number of its retail personal are unable to do so. UK government support is being used for around 430 of its Boots Mini-Club retail workers.

The impact of COVID-19 on its franchise partners globally is likely to lead to a “material” impact on Mothercare’s short-term revenues. But it added that the experience it gained as a result of the controlled supply shock that was exerted upon the business at the time of the administration of Mothercare UK and related store closures last November, is proving invaluable. It is currently negotiating with its franchise and manufacturing partners, as it seeks to manage and mitigate the overall impact on both our and their businesses.

The company has made progress in reducing its debt and is in talks with a number of debt providers regarding entering new debt facilities. It plans to focus efforts on helping to preserve the businesses of our franchise and manufacturing partners through even more collaborative ways of working, to ensure both the short term liquidity of our business together with our return to longer-term profitability.

Louis Vuitton owner LVMH could “accurately” calculate at this stage the impact of the closures of production sites and stores linked to the coronavirus outbreak around the world. The French luxury goods group will publish its sales figure for the first quarter on April 16, after the close of the Paris market. The brand expects it to decrease in a range between 10 and 20 per cent compared to the same period last year.

In the short term, the measures taken by public authorities to combat the Covid-19 pandemic have resulted in the closure of production sites and stores of the brand in several countries which will have an impact on the group's results. The brand has stated that this impact cannot be accurately calculated at this time without knowing the timing of a return to normal in these countries.

According to GlobalData, with the COVID-19 pandemic putting a stop to all non-essential travel, technology is now taking a front seat in communication between clothing brands and their suppliers. Buyers are now rethinking how they work with manufacturers on orders and product design.

UK clothing and homewares retailer Next is looking at a number of different scenarios to make up for the lack of face-to-face contact with its suppliers, including video conferencing. Teams would previously have travelled to factories to work on new product development, but are now asking manufacturers to send samples over. Video conferencing, with one sample at each end, is helping to recreate the process.

Software companies are also stepping in to help, particularly as more employees start working from home to try and stop the spread of the virus. Tukatech, for example, is offering CAD customers the opportunity to switch to a cloud license at no charge, allowing them to work from anywhere. While Centric Software has launched a series of quick-start, online collaboration packages designed to get brands, retailers and manufacturers working remotely.

The dynamic of sourcing and machinery trade shows is also changing, with organisers looking at virtual and other digital alternatives as the pandemic forces the cancellation of myriad events around the world.

Companies are finding new ways of staying in touch that they maybe haven’t considered previously. So having the right technology in place to enable a company to keep communication flowing across its supply chain has now become imperative if they want to remain operational.

Weighed by the impact of COVID-19 outbreak, India's exports to China and Hong Kong together slumped 41 per cent in February while imports declined more than 10 per cent. However, a sudden jump in exports to United States and United Arab Emirates during the month led to India's overall exports turning positive for the first time in seven months.

Official trade data reviewed by Mint showed India’s exports to China dropped 13.7 per cent in February to $1.1 billion while shipments to Hong Kong declined 62.4 per cent to $681 million. Similarly, imports from China due to supply chain disruptions fell 13.3 per cent to $4.4 billion while imports from Hong Kong which was less affected by COVID-19 outbreak picked up 3.7 per cent to $1.1 billion.

Retail sales in China fell by 14 per cent in January and 21 per cent in February combined. International agencies have significantly reduced their growth estimates for China with the rating agency S&P estimating an unprecedented 10 per cent contraction in China’s economy in January-March quarter while 2020 calendar year growth projection for the world’s second largest economy has been slashed to 2.9 per cent from 4.8 per cent for 2020.

According to Crisil if the pandemic is not contained soon, China’s demand for cotton, iron ore, and petroleum products from India is likely to suffer. Imports related to pharmaceuticals, automobiles, consumer durable, electronics and telecom/ smartphone equipment could also bear the brunt, hurting these sectors domestically.

The Apparel Export Promotion Council (AEPC), which represents the interests of the garment industry in India, has sent a letter to main operators in Europe and the United States urging them not to cancel orders in present times, while at the same time opening itself up to seeking flexibility measures.

Besides Primark, several companies have communicated to their investors over the last few days that their adjustment plans to deal with the pandemic include adjusting their purchases. British group Superdry, for example, will introduce "potential changes in the timing and structure of stock purchases for the next collection". In early March, the United Nations (UN) made a first approach to the impact of the pandemic on the fashion industry worldwide. The organization estimated losses in the textile and apparel industry at $1.5 billion, mainly due to a lack of raw materials.

The UN indicated that the most affected market will be Europe, with losses of $538 million; Vietnam, with $207 million; Turkey, with $164.2 million; Hong Kong, with $107 million; Taiwan, with $102 million, and the United States, with estimated losses of $80 million.

The entity chaired by António Guterres did not, however, contemplate order cancellation that is already taking place: in recent weeks, 490 factories in Bangladesh, one of the world's largest hubs, had received order cancellations with an impact of US$1.44 billion on the country's exports.

The impact of the cancellations is not limited to Asian markets, but also extends to nearby sourcing. In Turkey, where large groups have displaced their production with the stoppage of China, order cancellations are beginning to be registered, a situation that is repeated in Morocco.