Nearly 80,000 companies closed in Vietnam in 7 months! A chain reaction appears: Uniqlo can't get the goods and postpone the new release

September 17, 2021 15:46

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  According to the latest media report on Friday (September 17), Japanese retail company Fast Retailing ( 69.07 , -0.99 , -1.41% ) announced that the company’s brand UniqloSome new products originally planned to be launched in Japan will be delayed. The reason is that due to the impact of the epidemic, the garment factory that the company cooperates with in Vietnam has stopped production and the logistics of goods have also been delayed. In addition, other large-scale apparel companies in Japan have also changed their sales strategies because of the decline in production capacity.
  You know, Uniqlo is scheduled to launch as many as 80 new clothing varieties in all offline stores and online sales platforms in Japan on September 17 this year. Among them, 4 popular clothing varieties need to be postponed for one month before they can be put on the shelves.
  It should be noted that Vietnam is the second largest clothing producer of Fast Retailing. Statistics show that as many as 282 textile factories have reached cooperation with Fast Retailing. Among them, 46 are Vietnamese manufacturers, accounting for 16 of the total. %. Uniqlo said that since Vietnam is in a state of closure, the operating rate of garment factories it cooperates with has dropped significantly.

  It is reported that in order to implement a high degree of epidemic prevention and control in Vietnam, factories and enterprises that require continued operation must implement the "three-site" production model, but many factories and enterprises are unable to bear the additional expenditures, and the decline in productivity has been returned by customers. You can only choose to close the store and stop production. According to statistics from the Vietnam Statistics Bureau, in the first seven months of this year, the country’s cumulative number of closed and disbanded companies reached 79,700. In this way, on average, nearly 400 companies are closed every day in Vietnam.
( 165.965 , -2.46 , -1.46% )(156.42, -1.18, -0.75%)156.42 , -1.18 , -0.75% )

  It is worth mentioning that the Vietnam Textile and Apparel Association stated that 30%-50% of small and medium-sized textile mills in the country were forced to shut down. Under this circumstance, many companies that have previously reached cooperation with Vietnamese textile mills have already chosen to transfer their orders to other countries, which undoubtedly gave the Vietnamese garment and textile industry a "heavy punch".