According to several District 12’s textile and apparel companies, many leading enterprises in the industry are going out of their way to share their bigger orders as well as stocked raw materials and components with smaller companies to keep them in business. However, they estimate that this support at best would only last them another 2 months.
Director of Line Style Co., Ltd., a reputable clothing manufacturer that exports to the US and Japan, told reporters that some of their clients even canceled orders in fear that the quarantines at Vietnam-China border will disrupt supply and in turn affect their trade flow.
The leather-footwear and bag industries are suffering the same fate when, despite some factories having a 100 percent localization rate of supply, much of their specialized textile are imported from China.
Lots of FDI companies are playing the role of new clients for their desperate fellowmen, creating fully closed domestic supply chains for some manufacturing businesses.
National manufacturer associations recently wrote to the Government requesting immediate and appropriate support measures to help maintain their production and avoid a possible full-on crisis for manufacturing industries.
In response, the Government has since required commercial banks to lower lending rates and logistic costs.
Additionally, preferential interest rate and extended loan packages were among the proposals made by Chairman of HCMC Rubber-Plastic Manufacturers Association Nguyen Quoc Anh to help companies reduce losses and alleviate burdens on storage fees.
Businesses also suggested that competent authorities exempt land taxes for logistics and retail businesses to help support logistics services, goods preservation, and boosting domestic demand.
Nonetheless, these turns of events have been seen as a good opportunity to push Vietnamese industries towards building a closed domestic supply chain, diversifying markets and partners to avoid being affected when external markets fluctuate.