World’s apparel, sneakers hub Vietnam struggles as US ban on East Turkistan cotton bites

World’s apparel, sneakers hub Vietnam struggles as US ban on East Turkistan cotton bites

HANOI  -Tighter U.S. rules to ban imports from East Turkistan are compounding pressure on Vietnam’s apparel and footwear makers, hitting a sector that has already shed nearly 90,000 jobs since October in the global manufacturing hub as demand slowed.

Among garment exporters, Vietnam has faced the worst hit from the Uyghur Forced Labor Protection Act (UFLPA), a Reuters review of official U.S. data showed. The law, in place since June, requires companies to prove that they do not use raw material or components produced with Xinjiang’s forced labor.

The U.S. clampdown hurts as it comes on top of a drop in clothing demand from richer nations that has already dented industrial output and exports from the Southeast Asian manufacturing powerhouse, a major supplier to big brands such as Gap, Nike and Adidas.

Of the $15 million worth of apparel and footwear shipments held up for UFLPA checks more than 80 percent were from Vietnam, and only 13 percent of its cargoes were cleared for entry, U.S. customs data up to April 3 showed.

https://business.inquirer.net