Under the epidemic, the shutdown of China’s textile industry has also had a considerable impact on other countries.
Vietnam
Chinese managers are not allowed to enter
As the epidemic spreads, Vietnamese factories have also been affected.
At around 3 pm on February 1, the Vietnamese government announced without warning that it would refuse entry to flights from Taiwan, China. Thousands of people were about to rush back to Vietnam to preside over the start of the New Year. Taiwanese businessmen were stuck at Taoyuan and Kaohsiung airports. The Vietnamese government also made the decision to reject “all flights from China” before May 1.
The three-month suspension of flights between China and Vietnam still causes headaches for many investors. In areas of South Vietnam such as Ho Chi Minh, Binh Duong and Dong Nai where traditional production is the main focus, many companies have moved their original production lines in China to Vietnam. Most of the production management systems are dominated by Chinese cadres. Many Taiwanese production line directors are “Mainland Chinese”. Dry”.
Wuhan pneumonia has also brought logistics impacts.
Most manufacturers will maintain inventory for one more month, and its impact will depend on how long it takes for the epidemic to be controlled.
Cambodia
Lack of Chinese noodles and accessories, some companies have stopped production
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The Garment Manufacturers Association of Cambodia (GMAC) issued a notice on February 11 explaining the lack of raw material production in Cambodian garment and shoe factories. The notice stated that about 60% of the raw materials for Cambodia’s garment and shoemaking industries are imported from China. Some garment and shoe factories in Cambodia will suspend production for one or two months starting from the end of this month. Due to insufficient raw materials imported from China to Cambodia, some factories have not yet resumed operations due to the ongoing COVID-19 epidemic in China.
Cambodia’s Ministry of Labor said on Monday that at least four garment processing factories in Cambodia may suspend production due to delays in the supply of raw materials imported from China due to the outbreak of the new coronavirus. Labor Ministry spokesman Heng Sour said the supply of raw materials for clothing, yarn, buttons and shoe soles is currently experiencing delays.
The garment production industry is Cambodia’s largest industry, generating US$7 billion in revenue for the Cambodian economy every year.
India
Raw material exports interrupted
According to media reports on February 6: Since Chinese shoe factories have not yet started operations, the Indian shoe industry has also been affected.
Harkirat Singh, general manager of the Indian shoe manufacturer Woodland, said that 10% of Woodland’s shoes and special shoemaking raw materials come from China , is now also disrupted by the impact of the epidemic. If China’s raw material exports continue to be disrupted, Woodland may suffer a business loss of 5-10%.
Singhe pointed out that Woodland is working hard to shift Chinese production orders elsewhere, but this will take time.
All affected industries are looking forward to China’s full resumption of work, which will alleviate the supply disruption problem.
