[Affected by the new Coronary Pneumonia epidemic]
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Affected by the new Coronary Pneumonia epidemic, apparel retailers in many countries around the world have been hit, physical stores have closed, and sales have fallen sharply. In Southeast Asia, the garment production and export industries of Vietnam, Cambodia, Myanmar and other countries are therefore facing great difficulties. The apparel industry is crucial to the economic development of Southeast Asia. According to statistics, Vietnam's textile and garment industry has more than 2.8 million employees, and Vietnamese apparel exports account for 5.7% of the global market. For Cambodia, the garment manufacturing industry has created 16% of GDP and 80% of export revenue. There are about 500 garment factories in Myanmar, and 65% to 70% of its products are exported to the EU.


The spread of the epidemic in Europe and America has caused many international apparel brands with Southeast Asia as their production base to postpone or cancel their orders. In addition, some European and American apparel buyers, due to their financial difficulties, have proposed to postpone payment or ask for discounted prices for goods that have not been paid and are in transit. Due to the shrinking demand of the global apparel market, many apparel manufacturing companies in Southeast Asia have fallen into a shutdown situation. According to Vietnamese official estimates, the apparel industry's exports to the European market will decline by 8% or more in the first and second quarters of this year. In countries such as Cambodia and Myanmar, employment pressure on clothing-related industries has generally increased.


In response to the impact, Southeast Asian countries actively launched self-help operations. Cambodia implements a living allowance policy for unemployed workers, in which the government pays $ 40 per month and the factory pays $ 30. In addition, the government also stipulates that some apparel manufacturing enterprises can enjoy a "tax-free period" of six months to one year. The specific period will be determined by the Cambodian Ministry of Finance's assessment of the actual situation of the factory according to the degree of impact on the enterprise. Cambodian Prime Minister Hun Sen said that the government has prepared a budget of 2 billion US dollars to hedge the impact of the epidemic on the domestic economy.


The Burmese government announced the establishment of a new crown epidemic response fund of 100 billion Myanmar kyats (approximately 500 million yuan) last month, giving priority to supporting industries such as garment processing and manufacturing. The fund's loan period is 1 year, and the interest rate is only 1%. The Myanmar government also announced that eligible companies can delay the payment of quarterly income tax and monthly business tax until the end of the fiscal year (September 30). Before the end of the fiscal year, the export industry will no longer need to pay 2% of the export prepaid income tax. Myanmar has also established a Central Coordination Committee for the response to the new crown epidemic, which will develop vocational training plans for workers affected by the closure of the factory and provide new employment opportunities. The second secretary of Myanmar ’s Ministry of Labor, Immigration and Population said that the government is working closely with businesses and labor to weather the crisis.


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