HCM City clothing businesses face difficulties as demand drops
HCM City clothing businesses face difficulties as demand drops
HCM City’s clothing businesses are struggling to reopen as the domestic market remains “frozen”, with low customer demand and business customers reluctant to buy clothing items and materials from each other.
Thai Trang, owner of a clothing and fashion business in District 5’s An Dong Market, which also supplies clothes to other fashion stores around HCM City and other provinces, told Nguoi Lao Dong (Labourer) newspaper that her market stall and factory had been closed since the end of May.
She has been struggling to find buyers since some of her customers in HCM City are still closed, are also struggling to sell, or are focusing on selling their own stock first.
Meanwhile, her customers in the Mekong Delta are worried about new COVID-19 outbreaks, thus refusing to buy from her.
Her business still has an abundance of summer clothing items produced before May.
“My 80 factory workers and nearly 10 vendor staff are eager to return to work, but these goods are hard to sell so it’s hard to resume production.”
Suppliers of textile and garment materials are also finding it difficult to sell their large amounts of stock.
Ly Thanh Sinh, director of Minh Long Hung Textile and Sewing JSC, told the newspaper that domestic businesses in the textile and garment industry are waiting for positive market developments.
He said the market is currently frozen and that customers visiting modern distribution channels such as malls and supermarkets are mostly buying essential goods, and wholesale clothing markets have not fully reopened.
Business customers from other provinces are reluctant to buy since transport of goods across provinces remains difficult.
“The domestic textile and garment industry has been hit just as heavily as the tourism industry. Demand stimulation is needed for the market to improve, but that requires locals to have money, and most locals are struggling to make a living and have to save money.”
Some large local businesses have been able to reopen, albeit slowly. Viet Thang Jeans Co., Ltd. recently reopened 12 stores across Vincom malls around the country, offering large discounts to attract customers.
Pham Van Viet, general director of the company, said that revenue has been poor, with stores only making up to VND2 million (US$88.9) per day, compared to VND10-15 million per day year-on-year.
According to the Viet Nam Textile and Garment Association, local businesses have been focusing on expanding their domestic markets, but the fourth COVID-19 wave halted their plans. The pandemic situation is improving, so businesses are slowly resuming their goals.
HCM City, Viet Nam’s COVID epicentre, reopened on October 1 after months of strict lockdown measures, forcing many businesses to close down.
