Global Garment Industry Suffers from Coronavirus Pandemic

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Since the start of coronavirus pandemic, national and global economies have already been struggling across practically all sectors. COVID-19 is a serious detriment to the global garment industry, for example. For most countries, specifically in Southeast Asia, the garment industry may be the backbone of their national economies. Cambodia, Bangladesh and Vietnam have dealt with the lion’s talk about of issues facing the global garment sector caused by COVID-19.

Bangladesh
Bangladesh is heavily reliant on the garment industry. Textiles account for more than 80% of the country’s exports, and about four million personnel are directly employed by the industry.

According to the Bangladesh Commerce Sector, about 15 million jobs happen to be reliant in the garment industry. Included in these are truck drivers, port personnel and food sellers. Nevertheless, the Bangladesh Garment Manufacturers and Exports Association reports that potential buyers include canceled orders worth $3.18 billion. Western buyers, specifically, also have downsized previously put orders and have demanded 20-50% discounts.

In a survey executed by Penn Point out University’s Middle for Global Worker’s Rights, over fifty percent of the 316 Bangladesh garment suppliers surveyed reported that almost all of their completed or partially finished orders have already been canceled because the outbreak of the coronavirus. The survey also found that 98% of purchasers refused to donate to the partial wages of furloughed staff. This comes as immediate disobedience of what's required by law. For this reason, greater than a million workers have already lost their careers, and half of a million additional are in danger of being let go or furloughed.

Since Bangladesh’s garment industry has been suffering, numerous corporations and organizations are taking measures to improve the problem. Many large contractors, incorporating H&M, Walmart and Primark, have decided to pay partly or completely for the goods they have currently ordered. Bangladesh Primary Minister Sheikh Hasina offers released stimulus measures totaling more than $8.5 billion, including loans to help factory owners spend their workers’ salaries.

Cambodia
Cambodia’s situation is comparable to Bangladesh’s. The textile industry in Cambodia is worth about $7 billion and serves as the main component of the country’s market. As Western vendors canceled orders and demanded discounts from Cambodian suppliers, the industry began to crumble. According to the Employees’ Rights Consortium, which monitors factories all over the world, at least 14 brands contain canceled their orders. They now either won't purchase the orders or demand a price reduction.

In regards to a third of the country’s 600 garment factories have turn off, and thousands of personnel have lost their jobs. When facing such rampant unemployment, many Cambodians generally must seek out jobs overseas. However, virtually all international borders are shut because of the pandemic and the global overall economy can be facing a depression, making this an impossibility.

In addition, the Cambodian Ministry of Labor announced that workers would no longer receive benefits. In response, labor rights representatives possess banded jointly to demand all rewards owed to utilized and laid-off workers. A lot more than 200 union leaders and activists from 17 unions and federations released a social media campaign on August 14. The movement needs that the Cambodian federal government hold factory owners and employers in charge of paying workers the huge benefits owed to them.

Vietnam
The Vietnamese garment industry differs slightly from those of Cambodia and Bangladesh. They will be the country’s third-largest export, behind smartphones and electronics.

In line with the Vietnamese Ministry of Trade, apparel production essentially rose 13.2% from June to July. On the other hand, Vietnam was struck by a fresh wave of coronavirus cases in early on August, and textile exports went down 21%. Many factories didn't receive a single order for high-benefit products for the next half of 2020.

The true cause for the struggle in the Vietnamese garment industry, though, has more deeply ramifications for the global garment industry. Vietnam imports around 89% of the fabrics they employ for garment developing. The Southeastern Asian country imports roughly 55% of fabrics from China. Because the virus hit China hard in early stages, imports found a halt. Due to this early on disruption in the source chain, Vietnam is experiencing an acute shortage of elements.

The U.S. and the EU account for more than 60% of Vietnam’s garment exports. In typical fashion, various Western retailers have canceled or demanded discounts on the orders from Vietnamese suppliers. Due to this, the Vietnam Textile Association offers reported that 70% of garment manufacturers started out reducing shifts and rotating personnel by March, with a 10% upsurge in reductions in April and May.

Overall Outlook
The coronavirus pandemic has destroyed many aspects of the global economy but has particularly ravaged the global garment industry. Southeast Asia is definitely the epicenter for the world’s garments and textiles. As such, has been severely influenced by the pandemic.

While individual countries are building efforts to provide support to these industries, all of those other world includes a responsibility to greatly help these countries aswell. Not only if the big brands spend completely for the orders they located prior to the pandemic, but individual citizens need to step up to avoid the pass on of coronavirus by wearing masks and bringing measures to slow the pass on of the virus. The earlier the coronavirus pandemic has ended, the earlier the global economy can learn to recuperate from the damage the virus has induced.

Source: https://www.borgenmagazine.com

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