The supply disruptions in China are causing concern over shortage of raw materials to Vietnamese exporters that have already procured orders for 2022. These exporters procure around 50-55 per cent of raw materials and accessories for the textile, garment and footwear industries from China.
PhanThiThanhXuan, Vice Chairwoman and General Secretary, Vietnam Leather, Footwear and Handbag Association, said businesses in the industry had to slow down export deliveries as their Chinese partners lacked empty containers for transporting raw materials and accessories.
The supply of raw materials from China also decreased as many factories had to suspend operations, she added.
Escalating fuel prices has also forced plastic materials prices to go up, influencing input costs of plastic product manufacturers. Some garment companies have had to postpone delivery of orders due to the lack of raw materials, according to Vietnamese media reports.
The Ministry of Industry and Trade asked manufacturers to find new sources of supply outside China besides negotiating with partners to share risks and extend the delivery time.