Large Vietnam Garment Units Accept Smaller Orders To Survive
The biggest garment manufacturing factories in Vietnam, who employ thousands of workers each, are accepting orders as small as several hundred units to survive through the tough times, a situation, which they say they have never experienced before.
Statistics released by the Vietnam Textile and Apparel Association (VITAS) reveal that in the first five months of 2023, garment exports fell 21 percent from a year ago period. This decline is 5 percent further lower than that witnessed in the mid-pandemic period in 2021.
“Other than accepting smaller orders to keep their factories operational, garment factories specialising in trousers are even accepting orders for stitching shirts,” a VNExpress report stated.
Truong Van Cam, Deputy Chairman at VITAS was quoted as saying that most factories are cutting costs, while a few are even selling assets in a bid to survive. He also added that, even the period during the Covid-19 pandemic, was not challenging as it is now.
VITAS has now revised its forecast that Vietnam’s total garment exports will total to US $40 billion in 2023, 12-15 percent lower than targeted earlier.