According to real-time statistics released by Johns Hopkins University in the United States, as of 12:31 on April 27, Beijing time, the cumulative number of confirmed cases worldwide exceeded 2.97 million. The novel coronavirus continues to spread, and the epidemic situation in many countries is still not optimistic. The negative impact of the epidemic on the global economy is also beginning to appear. New York oil prices closed at a negative value for the first time in history. WHO warns, “The worst is coming.”
According to the “Coronavirus (COVID -19) Impact on Global Trade”, the global textile and apparel industry will lose more than 1.5 billion US dollars (approximately RMB 10.4 billion). In the face of the epidemic, the global textile and apparel industry is desperately trying to win this battle that is related to life, death and the future.
A new coronavirus pneumonia epidemic has impacted the “Gold, Three, Silver and Four” textile and clothing export season. According to statistics from the General Administration of Customs of China, in the first quarter of 2020, the country’s total exports of textiles and clothing totaled US$45.264 billion, a year-on-year decrease of 17.7% (a year-on-year decrease of 15.9% in RMB). Affected by the COVID-19 epidemic, textile and clothing exports in February were the lowest in the past 15 years, only US$5 billion. In March, my country’s textile and apparel exports were US$15.43 billion, a year-on-year decrease of 12.9% (a year-on-year decrease of 10.0% in RMB). Judging from foreign trade data, the export situation is not optimistic. Analysis by the China Textile Federation Industrial Economics Research Institute pointed out that from the perspective of textile and apparel exports over the years, due to the impact of the COVID-19 epidemic, the current level of decline in my country’s textile and apparel exports has even exceeded that in 2009 after the financial crisis.
Due to the epidemic, many European companies have closed stores in many countries and suspended production. According to a Reuters report on March 18, H&M, the world’s second largest clothing retailer, announced that it would temporarily close all 460 stores of its H&M brand in Germany and all 590 stores in the United States. It is reported that Germany and the United States are H&M’s first and second largest markets respectively. In a statement, H&M said it would also close all stores in Canada, Portugal and Belgium. According to incomplete statistics from Business Insider, more than 60 retailers have announced the closure of stores in the United States, including clothing brands Gap, Zara, Urban Outfitters, etc. Previously, Chanel announced that it would suspend production in the short term and close all of the company’s production bases in France, Switzerland and Italy. The production of high-end fashion, ready-to-wear, high-end jewelry and jewelry will be affected. Hermès has closed all 42 factories worldwide.
Currently, the global textile and apparel industry is experiencing a cold crisis, and the epidemic has a great impact on foreign trade import and export. As the global epidemic enters its second half, it is violently impacting the textile and apparel industry. In Europe, which is at the center of the storm, many brands have to suspend retail and production due to the seriousness of the local epidemic. Therefore, these brands have stopped dispatching to suppliers in Southeast Asia or directly canceled orders.
Who suffered greater losses during the epidemic? For Southeast Asian countries such as Bangladesh, India, and Vietnam, which are supported by export trade, textile, clothing manufacturing and other related industries are important domestic economic supports. These textile and clothing foreign trade companies are facing the most fatal link at the moment – a large number of order cancellations. , no orders to take, no jobs to return to. Once they fall, they may set off a huge economic storm.
Bangladesh
Thousands of garment factories have had their orders cancelled, facing serious survival problems
On April 18, local time, hundreds of garment factory workers in Bangladesh poured into the streets of the port city of Chittagong. They have ignored the country’s social distancing requirements during the new crown epidemic and have taken to the streets to demand that their jobs be restored and their wages paid. This country, which is highly dependent on clothing exports, is severely affected by the epidemic.
According to Reuters, hundreds of workers poured into the streets of Chittagong that day to protest, saying they were still waiting for garment factories to pay last month’s wages. This protest in Chittagong is not the first. On April 16, garment factory workers in Dhaka took to the streets and blocked an entire road, demanding that manufacturers pay their arrears of wages.
Bangladesh is the world’s second largest clothing producer after China. Bangladesh The domestic market has huge demand for textile raw materials and textile machinery. The domestic supply of raw materials such as cloth and yarn is insufficient. The huge gap brings opportunities to Chinese enterprises. In addition, Chinese textile and garment machinery has an increasing market share in Bangladesh, accounting for almost half of the newly built textile enterprises.
The Bangladesh Garment Manufacturers and Exporters Association stated that global brands have canceled orders worth US$3.2 billion, affecting 2.26 million workers. The number of canceled orders is still increasing every day. Lubana Hook, president of the association, urged brands and merchants including H&M and Walmart to stop canceling orders and instead accept orders that have been completed or are in production.
It is understood that 80% of Bangladesh’s export products are highly dependent onp>
Data from Vietnam’s Ministry of Industry and Trade show that in April and May, orders for Vietnamese textiles and footwear will drop by about 70% year-on-year. Even if the global epidemic eases at the end of May, Vinatex will still lose VND1 trillion (approximately US$42.4 million), which is double its net profit of VND510 billion in 2019. The CEO of Vinatex said: “According to the current situation, 30% to 50% of job opportunities will disappear by May.” It is worth mentioning that Vietnam’s textile industry has also been greatly affected by raw material supply problems before , under the epidemic, Vietnam’s manufacturing industry seems a bit fragile.
Data show that Vietnam’s textile industry is an important part of the country’s export market, accounting for about 10% of the total export value in 2019. If the textile industry is affected, Vietnam’s export market will be hit hard. According to Bui Trongxiu, deputy director of the Trade and Service Statistics Department of the General Administration of Statistics of Vietnam, most export orders in the United States and European markets have been suspended or canceled. If the epidemic situation does not improve in the second quarter, Vietnam’s export activities will be severely hit. Because, in addition to China, the United States and Europe are one of Vietnam’s largest export markets, especially for industries such as textiles, clothing, and leather shoes. </p
