Vietnam’s garment and shoemaking industries rely on China for many of their raw materials. Faced with China’s current power rationing storm, Vietnamese officials said that this measure will not immediately impact Vietnam’s relevant production chains. But prices of related imported raw materials may rise later.
Vietnam Labor News (LaoDong) reported that Nguyen Ngoc Thanh, deputy director of the Industrial Bureau of the Ministry of Industry and Trade of Vietnam, made the above remarks at a regular press conference a few days ago.
Nguyen Ngoc Cheng said: So far, we have not received any notification from Vietnamese companies about the shortage of raw materials caused by China’s power restriction measures.
He explained why Vietnamese companies have not been affected by China’s power restrictions. First, since 2020, the COVID-19 epidemic has repeatedly interrupted China’s supply chain. Under this situation, companies have learned to adapt and switch to importing raw materials from other markets.
In addition, a new wave of local COVID-19 epidemic broke out in Vietnam in late April. He said that various provinces and cities in Vietnam have implemented various epidemic prevention measures, and some companies have suspended operations, which has affected the production of raw materials. Demand has also plummeted.
Vietnam’s official data shows that Vietnam’s largest trading partner is China in 2020. Vietnam Customs statistics show that the bilateral trade volume between Vietnam and China in 2020 was US$133.09 billion, an annual increase of 1.39%. %. In addition, China is Vietnam’s largest import market and second largest export market after the United States in 2020.
Vietnam mainly imports raw materials and machinery, equipment, tools, components, etc. for garments, textiles, and shoemaking from China.
In order to achieve the goal of reducing carbon emissions and facing pressure from rising coal prices, China is undergoing a round of strict power restrictions across the country. Many factories must comply with the policy to reduce production or suspend operations. .
