Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

Vietnam struggles for raw material from China

Vietnam’s raw material imports from China have dwindled because of the coronavirus.

The outbreak is expected to negatively impact ten major industries in Vietnam, including textiles. If the disease persists, supply and transport chains will be in trouble and in the worst case scenario manufacturing will have to stop or be delayed. So for instance leather factories may have to shut down if they can’t source the material from China. Production of rubber and plastic in Vietnam is largely dependent on China with 70 per cent of materials imported from the country. China accounts for 55 per cent of Vietnam’s fiber imports. China has shut down manufacturing in many cities to contain the virus. So textile companies in Vietnam have to tap other markets to meet production targets. They would have to source from say Japan or South Korea where prices are much higher. Profitability will be challenged by higher material costs as companies have fixed prices with customers since the end of last year.

In January, Vietnam’s imports of fabric from China fell 18.1 per cent. Exports of textiles, a key sector, in all markets fell 21 per cent year on year in January, while that of footwear fell 9.7 per cent.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo