In the past two months, the second wave of COVID-19 in India has rapidly worsened and has become the most high-profile event in the global fight against the epidemic. The raging epidemic has caused many factories in India to close, and many local companies and multinational companies are in trouble. At the same time, many Southeast Asian countries have also been affected by the epidemic, and a large number of companies have suspended work or closed down.
1. The Indian garment industry lost a large number of export contracts
According to media reports, affected by the epidemic, Affected by the blockade measures, the exports of the Indian garment industry have shrunk severely. In 2020, the exports of the Indian garment industry fell by 24%. In the new round of the epidemic, related Indian companies have lost a large number of garment export contracts because workers are unable to come to work.
In the important garment towns of Delhi and Bangalore, the absenteeism rate of workers in the garment industry is as high as 50%. Industry insiders said that this time of year is usually the peak ordering period, but now buyers from all walks of life are more cautious.
Some textile traders in Surat, India, said that business has dropped by almost 90%. It is reported that there are 65,000 textile traders in Surat. If calculated according to the average number, the textile industry in Surat is losing at least US$48 million every day. At present, the entire Indian textile industry is facing a rapid decline.
The current situation in Surat is only a microcosm of the Indian textile industry. The entire Indian textile industry is facing a rapid decline.
2. Nearly 400 companies in Vietnam withdraw from the market every day
India is not the only one affected by the epidemic. Same goes for Vietnam.
In the first five months, the number of newly established enterprises and the total new registered capital in Vietnam reached 55,800 and VND 778.3 trillion respectively, with year-on-year growth of 15.4% and 39.5% respectively; new The average registered capital of enterprises was VND 14 billion, a year-on-year increase of 20.9%.
In addition, nearly 22,600 companies have resumed work and production, a year-on-year increase of 3.9%; the total number of newly established companies and companies that have resumed work and production has reached 78,300.
On the other hand, the total number of companies that have suspended operations, suspended operations pending dissolution procedures, and completed dissolution procedures has reached 60,000, a year-on-year increase twenty three%.
Among them, 31,800 companies were temporarily suspended, a year-on-year increase of 22.3%; 20,000 companies were suspended and awaiting dissolution procedures, a year-on-year increase of 20.7%; 8,000 companies had completed dissolution procedures, a year-on-year increase of 20,000. An increase of 32.3%. On average, nearly 12,000 companies exit the market every month, which is equivalent to 400 companies every day.
3. The epidemic situation in many Southeast Asian countries is urgent
In addition, in recent times, the epidemic situation in other Asian countries has also There are signs of warming, and Asian countries such as Pakistan, Cambodia, and Vietnam are also suffering from the impact of the new crown epidemic.
Pakistan: There are currently 938,000 confirmed cases and 20,000 deaths. Workers are currently unable to go to work due to a total lockdown and severe restrictions on transport between provinces. The country’s textile industry will suffer huge losses and production will drop significantly.
Cambodia: The latest cumulative reported cases are 37,000 confirmed cases of COVID-19 and 311 deaths. Cambodia’s garment industry employs 850,000 people and is a priority for vaccination. Half of the garment workers in the worst-hit areas have been vaccinated.
Vietnam: Confirmed cases of new crown pneumonia have reached a peak. Currently, Vietnamese textile companies are having difficulty finding workers. Due to tightened restrictions on the movement of people, Halong Bay and Lan Halong Bay have been closed until further notice. The Vietnamese government has suspended entry procedures for all foreigners.
Indonesia: Currently, a partial blockade is implemented due to the severe epidemic. Affected by this, workers have difficulty going to work and need a negative test report, but most people cannot get test reports regularly. The country’s textile industry plans to achieve an average annual growth of 5% in the five years from 2021 to 2026, and exports are the source of growth in the textile industry.
4. A large number of Southeast Asian orders are transferred to China
Affected by the epidemic, the apparel industry in India and other Southeast Asian countries Exports have shrunk severely, and some orders for textiles have been transferred to China. The person in charge of a textile company in Jiangsu said that some orders originally from India returned to my country due to the repeated local epidemics that led to insufficient operating rates of textile companies.
In the production workshop of a clothing company in Dongguan, more than 200 looms are running at high speed, and workers are producing according to orders in an intense and orderly manner. The person in charge of the company said: “40% of some orders from Southeast Asian countries, including India, have been transferred to our company, and now the startup rate has reached 100%.”
According to customs statistics, From January to May this year, the country’s textile and apparel exports totaled US$112.69 billion, a year-on-year increase of 17.3%. Among them, textile exports were US$56.08 billion, a year-on-year increase of 16.1%; in May, clothing exports were US$12.20 billion, a year-on-year increase of 37.1%. </p
