Vietnam shuts 35 percent garment and textile factories owing to Covid-19

Vietnam has temporarily shut around 35 per cent of textile and garment factories due to COVID-19, says Vu Duc Giang, Chairman, Vietnam Textile and Apparel Association (VITAS). Du Giang expects these factories to remain closed for a longer time as they do not have enough funds to pay for three-on-site working arrangements to support employees to return to work.

In addition, the vaccination rate of Vietnam's textile and garment industry is still very low, particularly in key production areas in the southwestern and southeastern provinces, he adds.

The total export turnover of these provinces in the central region accounted for 62 percent of the total export turnover of the industry.

The export value of the textile and garment industry reached $18.7 billion in the first six months of the year, while the target for the whole year is $39 billion.

The textile and garment enterprises in the country are under huge pressure due to the as they failed to ensure the production situation as planned. They are also worried about the worker exodus in Ho Chi Minh City. Their failure to return could cause a serious labor shortage in Vietnam in future, adds Du Giang.