Vietnam’s “Saigon Economic Online” reported on October 9 that on October 8, the Vietnam Textile Association (VITAS) and the Vietnam Leather, Footwear and Handbags Association (LEFASO) jointly conducted a The textile, leather and footwear industries are surveyed. Many textile and footwear companies participating in the survey said that delayed delivery this year was punished by some brands, and new orders in 2022 were suspended or reduced in quantity by partners.
Up to 68.1% of companies said that they were fined by brands for late delivery; 12.2% of companies applied to cancel orders with partners and had to pay contract penalties; 21 % of companies said that brands proactively canceled their contracts, but they were not forced to compensate; 13.1% of brands canceled orders they were preparing to sign.
According to the January-September industrial production and trade data of Vietnam’s Ministry of Industry and Trade, the production and exports of the footwear and textile industries dropped significantly in August and September. The reason is that Many factories had to suspend production. The export value of bags, suitcases, hats and umbrellas was US$2.24 billion, a year-on-year decrease of 3.7%; the export value of footwear was US$13.33 billion, an increase of 9.8% (export volume decreased by 44.2%); the export value of textiles was US$23.46 billion, an increase of 5.8% (export volume was US$23.46 billion, an increase of 5.8%). volume fell by 18.6%).
