Vietnam’s garment-textile and footwear have borne the brunt of COVID-19 (Illustrative photo: VNA)
Hanoi (VNA) - Vietnam’s garment-textile and footwear have borne the brunt of COVID-19 and firms in the sectors may take a long time to recover, experts said.
The sectors greatly contribute to the country’s exports as well as generate jobs for a large number of workers. However, many factories remain closed due to difficulties triggered by the ravaging pandemic.
Estimates showed that a footwear firm with about 9,000 workhands needs to spend approximately 1 million USD on preventive measures, while the costs of input materials have risen 5-10 percent.
Some businesses said they are facing fines for late delivery and risks of losing orders for the next season.
To maintain orders for the following year, Phan Thi Thanh Xuan, General Secretary of the Vietnam Leather and Footwear Association (Lefaso), said the association has proposed easing the restrictions in three phases.
Prospects of this year and even of 2022 have become gloomy, she added.
Chairman of the Vietnam Textile and Apparel Association (Vitas) Vu Duc Giang said if the COVID-19 pandemic continues to spread, firms may not be able to maintain and stabilise operations as well as retain customers.
It is important to keep the workforce amid uncertainties of production plans, COVID-19 vaccine shortages and unpredictable developments of the pandemic, according to Vitas.
To restore production of the sectors, the Ministry of Industry and Trade (MoIT) will work to remove bottlenecks and provide the most possible support to help factories resume operation and take advantage of orders at year’s end in the European and US markets.
In addition, the MoIT will step up the implementation of a development strategy for garment-textile and footwear to 2030, with a vision to 2035, and the building of a programme on sustainable development of the sectors until 2030.
It will also strive to expand export markets, capitalise on advantages of existing free trade agreements, diversify export items and improve the competitive edge of products and brands./.
Export revenue of the garment and textile sector surged 21.2 percent year on year in the first five months of 2021 to about 15.2 billion USD, according to the Vietnam Textile and Apparel Association (VITAS).
Without a more effective business support package, the country’s goal of 6.5 percent in gross domestic product (GDP) growth for this year will be hard to be achieved as the GDP growth in the first six months of 2021 is forecast to reach only 5.8 percent, according to experts.
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Vietnam’s garment-textile and footwear have borne the brunt of COVID-19 (Illustrative photo: VNA) 
