Vietnam has overtaken Bangladesh since last year to become the world’s second largest garment exporter. Many experts believe that maintaining this position during a prolonged pandemic is a difficult problem for both businesses and the government.
Vietnam ranks second in the world, just behind China and surpasses Bangladesh in terms of garment exports in 2020. That is the assessment of the World Trade Organization – WTO announced on August 4.
WTO statistics show that in 2020, Vietnam’s textile and garment products account for 6.4% of the global export market share, up 6.2% compared to 2019, bringing Bangladesh to third place on the ranking chart.
Still according to WTO data, garment exports of Bangladesh and Vietnam both decreased in 2020 due to the impact of the Covid-19pandemic, but exports from Bangladesh fell sharply by more than $28 billion, while Vietnam reached $29 billion.
Vietnam’s state-controlled media quoted the opinion of the Bangladeshi newspaper, the Dhaka Tribune, that Vietnam overcame Bangladesh thanks to its focus on product diversification, plus the good influence of the FTA – Free Trade Agreement that Hanoi signed with the EU in June 2019.
This was confirmed by Mr. Nguyen Thanh Sang, former General Director of Phuoc Thinh Textile and Garment Company:
“It must be said that in the past time, Vietnam focused on investing in the textile and garment industry. Integrating the origin of goods in Vietnam to go to other countries, the development speed of the textile and garment industry exports to countries where tax is zero, so the quantity of goods and production capacity is also abundant. The growth rate also benefits from zero taxes. From that point on, I think the preparation work over the past few years has achieved that investment goal.”
The question up to now is whether Vietnam is able to retain its position as the second largest country in the world in terms of garment exports.
The second problem, how to help Vietnam’s garment industry stand firm when many large and small processing factories, especially in the South, are paralyzed and stagnate, as one garment business owner in Binh Duong said (anonymously for safety) shared by email with RFA:
“My business situation is very tragic, the factories are all closed, the three on the spot are also F0. Now, no business can produce anymore, hope there is a vaccine, but don’t know about support.”
The fact that Vietnam is only behind China in the field of garment exports is not strange, the main thing is that it is difficult to maintain this position in the current situation of “fighting the epidemic like fighting the enemy,” is the opinion of someone who has worked in the past. Previously working at the Department of Labor, Invalids and Social Affairs, lawyer Dang Dung:
“I live right next to Tan Binh industrial park. Honestly, looking at the empty street scene, not a single restaurant or establishment is operating, and no one is working. The industrial park is deserted like this, what to do now?”
I watched on VTV, saw the Secretary of the Bac Giang said that they had organized three in place, told to set an example for Ho Chi Minh City. But the press in Ho Chi Minh City is panicking because applying that model is an outbreak, the places where such three gather are only textile companies.”
Then with the situation of different policies in different localities, the situation of vaccines is not clear, Directive 16 is strict and even more stringent, it must be said that we have not seen a single ray of light on production, business, and epidemics service, and my achievement in textiles is difficult to maintain.”
For the former General Director of Phuoc Thinh Textile and Garment Company, Mr. Nguyen Thanh Sang, the production situation in the first 6 months of 2021 was relatively good, but whether it can keep the second position in garment exports in 2021, it is not a good idea. No one can say for sure:
“For a few months now, having to comply with Directive 16, businesses are also falling into the general situation of the whole country. The remaining six months of the year if the pandemic situation continues like this, the local workforce is dispersed, industrial parks are still blocked, some businesses have stopped operating. Now we can produce only 20 – 30%, there are orders but no people, then I think the second position in the world is unreal.”
If you want to know if Vietnam can keep the second position, or will be downgraded this year in 2021, let’s take a look at the current pandemiological situation, is the assertion of Mr. Nguyen Dinh Truong, Vietnam Textile and Apparel Association:
“Based on the specific situation, I can’t say if I can keep it or not, I can only guarantee to resume production.”
To restore production, the priority steps that the Government and textile enterprises must take are equal, according to expert of the Textile and Garment Association Nguyen Dinh Truong:
“The first is the successful fight against the epidemic, because the epidemic continues for a long time, it cannot be said that we can overcome it according to our subjectivity.
The second is to keep workers, with new workers to produce and pay wages to workers. The third is to keep customers, both supply and demand. If not, then recovery will be very difficult and will be slower.
The support, of course, has to be one step slower, only to a degree, but Vietnam does not have money like the US but gives each person thousands of dollars at a time, businesses have to apply. I can’t say for sure if I’ll keep the second or the first.”
With the experience of a person who used to work in the Department of Labour, Invalids and Social Affairs, lawyer Dang Dung said that in order to restore exports of Vietnam’s garment industry, mainly focusing on southern provinces, it is necessary to find a way to prevent the large numbers of workers from fleeing the city:
“In the North, I think the situation is better than in the South. I don’t understand if the children who have moved back home have jobs to make up for the current jobless numbers in Ho Chi Minh City and the southern provinces. If you run to the North and get a job right away, I think that’s very welcome.
If the State knows how to call skilled workers in the South to return, pick them up and send them to work, I think that is an open direction for workers and production. I have not seen the Government seek to call for skilled workers to register in the industrial zones waiting for them. There has been no news on the radio and TV how the State will help these workers and textile enterprises.”
In short, according to experts in the garment industry, without financial support to restore production and export, they can’t talk about the world’s best this year and next year.
Lawyer Dang Dung said that not only the garment industry but all other processing industries are struggling with this very difficult recovery problem.
Thoibao.de (Translated)
