In the past two months, the rapid deterioration of the second wave of COVID-19 in India 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.
India, the hell on earth where the epidemic has not subsided recently, made an incredible decision: to lift the lockdown!
You read that right! The lockdown started on April 19, and it didn’t last for two months before it was relaxed? !
On May 31, the Chief Minister of New Delhi, India The minister announced: The epidemic continues to improve, with the lowest number of new cases in a single day – 160,000, proving that the epidemic has achieved a staged victory, and factories and construction sites can resume work!
For thousands of workers, this is a “huge relief.”
“We must consider the working people at the bottom. They need to work to make money and solve the problem. Food and clothing.” “No one wants to be locked down forever. If the epidemic becomes serious again, we can just lock down again.” Well, if someone asks, we have even found a “solution”… “Relief” has come, and the people and so on are also Without waiting, drive back to the city immediately! The streets were blocked and people in the market were rubbing shoulders with each other. As usual, shops and restaurants were all back in business! Starting from June 15th, students will return to school!
On the other hand, the southwestern border of the United States The number of Indian immigrants along the route has surged. During April, the Border Patrol intercepted nearly 180,000 illegal immigrants, a record high in the past 20 years. The most serious thing is that some of the immigrants have been infected with the new coronavirus and have no hope of staying in their home countries, so they decided to give it a try and go to the United States with better conditions to find a chance of survival.
Obviously, “the United States is not prepared for the new wave of refugees”; according to the “New York Times” report, the immigration police force is close to the limit, and the Border Patrol : “I can’t hold on any longer!” Not only the United States, but Israel has also just intercepted a large wave of Indian immigrants, most of whom were tested positive for COVID-19.
India Epidemic The impact of spillover continues to appear
The textile industry around Southeast Asia has suffered
Recently, with the epidemic in India The impact of spillover continues to show, and the current COVID-19 epidemic situation is constantly changing. After the United States and India have successively become the “global epidemic hardest hit areas,” serious epidemics have recurred in Southeast Asian countries, and the epidemic prevention situation is not optimistic.
Bangladesh
In the last week of May, the number of new coronavirus cases in Bangladesh increased by an average of 1,422 daily , the infection rate is 3/100,000, the cumulative number of confirmed cases is 782,000, and the number of deaths is 12,200.
The new crown epidemic has led to the closure of shopping malls and factories, serious unemployment problems, some brands are selling at half prices, and workers’ wages have been reduced by one-third. According to the latest survey report, in the 10 months ending in April this year, clothing exports were US$26 billion, a year-on-year increase of 6.24%, of which knitted garment exports were US$13.99 billion, a year-on-year increase of 15.34%. Clothing exports in March were US$3.07 billion, a year-on-year increase of 12.59%. This was mainly due to the relaxation of the blockade in the western region, which led to the slow recovery of clothing exports and the suspension of road transportation with India until May 31.
Pakistan
The number of confirmed cases has increased in the past week, with an average increase of about 3,200 per day, higher than 2,600 cases the previous week. There have been a total of 908,000 confirmed cases and 20,000 deaths. A total of 5.4 million vaccinations have been administered, with an average of 133,000 vaccinations per day last week. The Prime Minister asked the Health Minister to arrange mass vaccination for the industrial sector. The country is currently under a weekend lockdown, with only the media and medical sectors functioning normally. Due to the surge in cases in Sindh, the local lockdown has been tightened and all non-essential transportation has been stopped after 8 pm. The current lockdown has been extended for another two weeks.
Workers are currently unable to go to work due to a total lockdown and strict restrictions on transportation between provinces. Only with mass vaccination will the current situation change. The country’s textile industry will suffer huge losses and production will drop significantly.
Cambodia
In the past week, the number of confirmed cases of COVID-19 in Cambodia has increased, with an average daily increase of 529 cases , up from 400 cases the previous week. As of May 27, the country has reported a total of 27,000 confirmed cases of COVID-19 and 190 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. As of May 18, 20% of the target population has been vaccinated. On May 16, China’s fourth batch of vaccines arrived in Cambodia. The Cambodian government continues to tighten the blockadeAs a control measure, a three-color reporting system has been established, no travel is allowed in red areas, and markets and food vendors are closed. At present, factories, labor unions and the Ministry of Labor recommend resuming work and production while ensuring safety. It is proposed to implement two-week shift work, with half of the staff on duty, and to test 10% of on-duty staff every month. Since not all personnel have been vaccinated, the factory is obviously underemployed.
Although the blockade has halted activities in various domestic industries, Cambodia’s economy is expected to grow by 4% in 2021, mainly due to active manufacturing and the government’s continued fiscal stimulus. In the near future, transportation in the capital will be fully restored, and all large cruise ships and Mekong River vessels from Vietnam will be prohibited from entering.
Vietnam
Vietnam’s confirmed cases of COVID-19 have reached a peak. On May 27, the country’s Ministry of Health reported 6,086 confirmed cases and 45 deaths. Community cross-infections have occurred in many large cities, and the virus is currently spreading in industrial areas in Ba Giang, Bak Ninh, Da Nang and other provinces, and Van Phuoc Province has implemented a lockdown. So far, Vietnam has administered a total of 1 million vaccine shots. From May 13 to May 27, 17 industrial and processing zones activated comprehensive epidemic prevention and control systems, while areas without these plans were closed.
Currently, it is difficult for Vietnamese textile companies to find workers. Many people found jobs after returning to their hometowns. Because many provinces focus on industrial development, workers returned to their hometowns. There are many job opportunities. 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
Last week, Indonesia’s new coronavirus infection rate was 14 per 100,000 , an average of 5,450 new cases were reported daily, and the infection rate was slightly higher than the previous week’s 9/100,000. As of May 27, Indonesia has reported a total of 49,800 deaths and administered a total of 25.7 million vaccinations, with an average of 259,800 vaccinations per day last week. Currently, Indonesia continues to implement a partial blockade. Public and commercial activities are limited to special time periods. Commuting is not restricted, but it depends on the nucleic acid test results. Affected by the partial lockdown, workers in the country have difficulty getting to work and require negative test reports, 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.
Sri Lanka
In the past week, the number of new confirmed cases in Sri Lanka has increased even more, with an average daily increase With 3,168 cases, the country has a total of 170,000 confirmed cases and 1,269 deaths. A total of 1.7 million vaccinations have been administered, with an average of 42,000 vaccinations per day in the past week. The government continues to take measures to control the spread of the epidemic, but the president opposes more lockdowns. The number of confirmed cases in many factories in the country has increased, and some factories have closed. A large number of workers have been forced to squeeze into cars to go home or enter the workplace, unable to maintain any social distance, leading to more infections and factory closures. The Chairman of the Investment Committee expects that the country will achieve the textile industry’s export target of US$12 billion by the end of this year.
Myanmar
The government has suspended reporting on the number of confirmed cases of the epidemic. The latest data is an average daily increase of 22 cases, with a total of 3,213 deaths. Before the government suspended reporting, the country had administered a total of 2.5 million shots, an average of 65,500 shots per day. Although the country has implemented a blockade, there are no restrictions on work and travel, so there is no problem with factory employment. However, as Bangladesh seizes market share, Myanmar’s production may be affected, forcing some workers to lay off their jobs.
The worsening political crisis in Myanmar and the raging COVID-19 epidemic have prompted international retailers and brands to shift orders to Bangladesh, which has a more stable society and a better epidemic situation. This has given Myanmar enterprises cost brings greater pressure. Affected by the epidemic blockade, Myanmar has great traffic problems, and the transportation of production materials has been seriously affected.
The epidemic has slowed down the pace of domestic and foreign trade orders
Beware of the risk of overseas order cancellations
The overall global economic situation is still weak, and domestic textile and foreign trade orders have always been tepid. Mr. Wang, who exports to Japan, said that since the epidemic, the entire order-taking rhythm has completely changed. Customers spend most of their time waiting and watching, and very few actually place orders. Recently, the overseas epidemic has intensified, and the wait-and-see mood has intensified. With the arrival of the off-season, orders have gradually decreased.
In addition to directly affecting the foreign trade market, the domestic trade market is also being affected subtly. The severe epidemic situation abroad is like a time bomb, making people panic all the time. The textile market is also cautious. Orders are mostly placed in the “small batch, multi-batch” mode. The number of stockpiles in the past has also been reduced. Therefore, the downstream weaving market lacks highlight products and goods are generally sold. Domestic clothing companies are also in a wait-and-see mood. After proofing, they either have nothing to do or wait for a long time for small batch orders. At the same time, we would like to remind our foreign trade friends who have recently traded with India and exported to India and Southeast Asian countries. They must pay attention to the risk control of payment and delivery, and beware of customs clearance at the destination port. No one will pick up the goods at the destination port, and the buyer abandons the goods. Please tell each other about non-payment and other issues to avoid affecting shipments and causing losses!
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