EU textiles have returned to pre-epidemic levels!
Since the epidemic, the European textile industry has regained its emphasis on the textile industry. Many changes have been made in manufacturing processes, R&D, and retail to maintain its competitiveness. The textile industry in most EU countries has shifted to producing higher value-added products. product. As energy costs decrease and raw materials increase, sales prices in the EU textile and apparel industry are expected to rise to unprecedented levels in the future.
Vietnam textile orders are scheduled to the third quarter
The chairman of the Vietnam Textile and Apparel Association recently stated that in the first two months, Vietnam exported nearly US$8.2 billion worth of textile and apparel products, a year-on-year increase of 59%. In just one year, Vietnam’s textile and apparel exports have increased by 50% year-on-year, which is impressive.
The chairman of the Vietnam Textile and Garment Association said that in the first quarter, the industry is expected to receive export revenue of 12.7 billion to 12.8 billion US dollars. According to statistics from the General Administration of Customs of Vietnam, Vietnam’s exports to the United States reached US$9.76 billion in March, and total exports in the first quarter reached US$25.96 billion. It is worth mentioning that textile exports to the United States reached US$4.36 billion, a year-on-year increase of 24.2%, accounting for 50.3% of the total exports of such commodities. It is understood that many local textile companies in Vietnam have even placed orders into the third quarter of this year.
There are many difficulties in resuming work and production in China
01 Difficulties in capital turnover
With the outbreak of the epidemic, gold, silver and gold are all in decline. Logistics have been blocked, construction has been delayed, and raw material prices have risen, resulting in slow circulation of goods and increased pressure on capital withdrawals. Liquid funds in the hands of textile bosses have shrunk significantly, and recent debt collections have been significantly more than in the past. .
03The supply chain is difficult to open up
Take Shanghai as an example. Recently, the list of Shanghai’s resumption of work and production was announced, and the resumption of work and production has been carried out one after another. However, there are still many difficulties in starting up the entire industrial chain from raw material transportation to production, and from production to sales.
Recently, some enterprises in Shanghai have taken the lead in resuming work and production. The reality is that only 70% of companies are currently operating. Due to the insufficient number of employees returning to work, some companies have only restored 40% of their production capacity.
After the release of the white list, many companies did not start operations ideally. They all faced a problem – it was difficult to find employees. There are a total of 666 whitelist companies announced in Shanghai, but not so many companies have actually started operations. The difficulty in getting people to work is a major obstacle. For example, if they have certificates in their hands, the community will not let them go… If people cannot come back, of course companies will not be able to resume work and production better.
This has resulted in many companies having only a very small number of employees who meet the conditions for resumption of work due to various reasons (such as conflicts between whitelisted companies and employee address blocking policies). Most employees are still unable to come in and out of their homes, and it is still difficult for companies to resume work. Therefore, some companies simply do not resume work to avoid cases and production halts! Obviously, due to epidemic prevention requirements, logistics requirements, etc., it will take a certain amount of time for companies to restore their production capacity, and there is also great uncertainty.
We all know that the industrial chain is a whole, and any error in any link will cause problems in the chain. The resumption of work has always been the resumption of the entire industry chain, and the resumption of work in only one production link will have no effect. Only by actively cooperating upstream and downstream and supporting each other can the chain be complete. But nowadays, this kind of “resumption of work alone” phenomenon is not rare. Either there are insufficient personnel, or the materials from suppliers have not arrived, and many other factors have led to the delay of the company’s resumption of production plan.
The overweighting policies formulated by various regions have fragmented the unified market into pieces. Instead of being a unified market, it has become a very fragmented and inefficient market, which will seriously affect the operation of the economy!
04Freight price increase
As Shanghai companies resume work and production one after another, it is expected that seaborne cargo volume will rise rapidly in May. Recently, many shipping companies have announced that they will increase the “General Rate Surcharge” (GRI) on the trans-Pacific route from Asia to the United States starting from May 1. Shipping companies such as COSCO, ONE, Evergreen, Yang Ming, and HMM All are included in the price increase!
This price adjustment will impose a surcharge ranging from US$1,000 to US$2,000, which is equivalent to approximately 10% to 20% based on the freight rate increase.
Although work and production have gradually resumed, there is still a long way to go to solve problems such as personnel arrivals, supply chains, and road closures.
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