The delay in the resumption of work due to the COVID-19 epidemic has unexpectedly affected Taiwanese factories in Southeast Asia. Major garment manufacturers Ruhong and Juyang both said that their inventory can be used until mid-March, and orders that cannot be made in time will be The customer has agreed to delay delivery. Although China’s current resumption of work is slow, there is no material shortage crisis.
Due to rising wages in China, Ruhong closed its only factory in China as early as December 2016 and focused all its production capacity in Vietnam. As for Juyang, although it has Production capacity, however, accounts for only 4%. The main players are in Vietnam and Indonesia, so the impact will not be significant.
Although the Southeast Asian factories of the two major garment factories are not affected by the epidemic and resume normal operations after the Lunar New Year, there are currently rumors that there may be supply concerns for auxiliary materials, mainly the supply of auxiliary materials Most are from China.
Juyang said that about 50% of Juyang’s auxiliary materials come from China. The company knows the status of various Chinese suppliers. As of today, only half of them have resumed work, and there are still Half of them have not yet resumed work, and overall observation shows that the supply of auxiliary materials is not very stable.
However, Juyang itself has inventory and can temporarily cope with it. It is estimated that the inventory can last until mid-March. At the same time, judging from the resumption of work by Chinese suppliers, the final As soon as everyone returns to work in early March, if logistics and transportation controls can be relaxed simultaneously, it is expected that there will be no material shortage crisis, and the worst-case scenario will be a delay of 1-2 weeks in delivery.
As for Ruhong, he also pointed out that the inventory of auxiliary materials will be sufficient until mid-March. If the customer specifies the fabric factory, the customer has agreed to postpone the delivery; non-customer designated fabrics Factory, Ruhong is actively looking for alternative sources, or asking suppliers to dispatch production capacity to supply Ruhong from factories in non-China regions. It is indeed still coordinating material supply issues.
