Asia's garment industry sees layoffs, factories closing due to virus

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Supply chains of Southeast Asian factories that are reliant on China, affected. FMTNews

Garment workers sew clothes at Pro Sports factory in Nam Dinh province, Vietnam.

Such bad news is being repeated in many parts of Asia’s more than US$290 billion textile industry, which accounted for 60% of the world’s readymade garments, textiles and footwear in 2015, according to World Trade Organisation statistics. Cambodia said this week that 10 factories had already applied to suspend operations and would pay partial wages to about 3,000 workers.

“Almost 70% of our woven fabrics come from China and naturally if goods do not arrive on time, the readymade garments industry will be affected. If the crisis in China is prolonged, the impact would be severe,” Nasir said.Neighbouring Myanmar has a smaller industry but is more dependent on China, with the Myanmar Garment Manufacturers Association warning that half of the nation’s 500 factories could shut down by March if the crisis persists.

 

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