The Impact Of US-China Trade War On Vietnam’s Textile Industry

Why do teenage girls wear short cropped top even if their parents tell them that it is inappropriate? Young girls feel comfortable wearing cropped tops and it certainly looks good on them. However, are cropped tops usually more affordable than normal shirts because less fabric is used to produce them or does the price depend on the status of the garments industry?

According to industry experts, the textile industry of Vietnam will be facing difficulties in both export and production because of the effects of the intensified trade war between the US and China. The Ministry of Investment and Planning said that Vietnam’s exports and production may decrease because buyers are concerned with the ongoing trade war. This has resulted to fewer and smaller orders.

According to a performance review made by Vietnam National Textile and Garment Group, textile companies in the country will be hit hard if the trade war drags on. Traditionally, China is a major market for Vietnamese products. Export of raw materials to China accounts for 60% of the country’s total export volume.

Among the most affected by the trade war is yarn export because its price continues to fall due to fear of additional tariffs being slapped on $250 billion worth of Chinese products. Aside from the worsening prospects brought about by the trade war, Vietnam faces intensified competition from India, Indonesia, Pakistan and Thailand.

A year ago, there were more than enough orders to work on until the end of the year. Today, companies are scrambling to find orders to maintain production. Majority of orders are small volume and short term because customers are waiting for new developments in the trade war. More and more Chinese orders are being shipped to other countries that offer better tax incentives like Cambodia and Bangladesh. Expectations for trade deals are also unrealistically high.

There are many reasons why some girls prefer to wear short cropped top instead of normal shirts or blouses. For some, it is a form of self expression which means that they do not agree to what society deems as appropriate clothing. Others want to be fashionable and stylish.