Many Vietnamese textile and footwear firms are confident they can alter plans depending on need and find new markets to cope with the second wave of the COVID-19 pandemic. Most such firms feel the situation is worsening in the two sectors as the epidemic returns. But the situation now is different as the demand for personal protective equipment (PPE) is shrinking.
The Vietnam National Textile and Garment Group (Vinatex) sustained operations and cash flow in the first six months of the year due to its decision to produce face masks and PPE, according to its general director Le Tien Truong.
But many manufacturers switching to manufacturing PPE led to oversupply, he added.
Truong said developing the domestic market is the most feasible way to survive the pandemic.
Though the domestic market accounts for only 10 per cent of the industry’s capacity and cannot fully mitigate the unemployment problem, it is still a solution, he said.
Support from the government in the form of access to cheap credit and deferred tax payment is also imperative, he was quoted as saying by a Vienamese newspaper.
Phan Thi Thanh Xuan, general secretary of the Vietnam Leather, Footwear and Handbag Association (LEFASO), too said though the domestic market is very small, developing it would be a key solution amid the difficulties in exporting.