In the past month or so, the outbreak of the epidemic in India has impacted many neighboring countries. As the core of Asian and global textile and apparel manufacturing, the current situation of these countries has been of concern to market participants. China Cotton Network has specially summarized the epidemic situation in Bangladesh, India, Pakistan, Sri Lanka, Vietnam, Cambodia and Indonesia to help the industry analyze and judge the current market.
Bangladesh
In the last week of May, the number of new coronavirus cases in Bangladesh increased by an average of 1,422 per day. The infection rate is 3/100,000, the cumulative number of confirmed cases is 782,000, and the number of deaths is 12,200. So far, Bangladesh has injected a total of 9.8 million vaccine injections, with an average of 37,300 injections per day in the past week. The national lockdown will end on May 30. During the lockdown, road and water transport were functioning normally and at full capacity.
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.
India
India currently accounts for half of the world’s daily new confirmed cases, and the number of cases is growing. Slowing down, the average daily number of new cases dropped to 237,000 last week, with a total of 27.1 million confirmed cases and 311,000 deaths. So far, India has administered 195 million vaccinations, with an average of 1.4 million vaccinations per day in the past week. The Indian government has resisted a nationwide lockdown, which could be eased in New Delhi this week if the epidemic eases further, but so far many states remain under lockdown. There are approximately 100 million migrant workers in India and they will have nowhere to go if a nationwide lockdown is imposed. During the rapid rise in new cases in the early days, many migrant workers in New Delhi returned to their hometowns.
The blockade of major textile distribution centers in India has affected the supply chain and restricted the supply of gauze raw materials, which may affect the output of end products in the short term. The situation of export-oriented clothing and home textile companies may be slightly better than that of spinning and weaving companies. At the same time, the tight supply of containers and rising shipping costs are also eating into corporate profits, which may be difficult to change in the short term. Capital investment in the textile and apparel industry has declined as export stimulus measures have been uncertain over the past two years and production-related incentives have been unclear in recent months.
Currently, several shipping hubs such as Singapore, the United Arab Emirates, the United Kingdom, and the United States have refused to allow Indian ships to enter the port. Although India’s import and export are not blocked, if If this situation cannot be improved, India’s domestic trade, especially container trade, will be greatly impacted. Currently, the Indian government has banned large cruise ships from entering the port and prohibited international tourists from entering the country.
Pakistan
The number of confirmed cases has increased in the past week, with an average increase of about 3,200 per day, which is higher than the previous week. 2,600 cases a 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 severe restrictions on transport 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. Public transportation within and between provinces is closed until June 1.
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. That’s 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 strengthen blockade control measures and has established a three-color reporting system. Travel is not 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
Confirmed cases of COVID-19 in Vietnam 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. 5From 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 have found jobs after returning to their hometowns. Because many provinces focus on industrial development, there are many job opportunities for workers back home. . 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 per 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. From May 6 to May 17, Indonesia banned any domestic travel. From May 18 to May 24, nucleic acid test certificates were required 24 hours ago. Travel between cities and states will not be affected. 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 of 3,168 The country has a total of 170,000 confirmed cases and 1,269 deaths. A total of 1.7 million vaccinations have been administered in the country, 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 the number of confirmed cases of the epidemic. The latest data is an average daily increase of 22 cases. , 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 brought costs to Myanmar companies. More pressure. Affected by the epidemic blockade, Myanmar has great traffic problems, and the transportation of production materials has been seriously affected. </p
