Local damage to Vietnamese textile companies in Vietnam

Recently, disputes between China and Vietnam have escalated, and Vietnam has witnessed the largest scale demonstration in recent years. Rainbow announces that the Vietnamese factory was hit by mobs and has suspended the production operations of South Vietnam facilities. The related person in charge of Blum Oriental told the Great Wisdom News Agency that the company’s factory in Vietnam had not been affected, but it was safe to leave on this Wednesday.

Tianhong Textile's damaged property includes mechanical control panels for nearly 20,000 spindles, some waste cotton, some windows and computers. The company has approximately 490,000 spindles for yarn production in South Vietnam, accounting for approximately 26% of the Group's total yarn production facilities. The company said that if the demonstration continues, it will adjust the production plans of other production facilities in Vietnam and China and try to avoid business disruption.

Bruno Eastern officials said that today's situation is better than yesterday, Vietnam has begun arresting demonstrators, the company will later contact the Vietnam factory to discuss start time. The company's first-phase production capacity of 100,000 ingots in Vietnam has been completed and put into production, with high up-front costs, and it is still in a state of loss. It is expected that it will begin to contribute profits from next year. The second phase of 180,000 spindles production capacity is expected to be partially trial-produced in the fourth quarter.

In recent years, Chinese textile companies have set off an upsurge in investment and construction in Southeast Asia, hoping to enjoy lower local labor costs and raw material prices. The large-scale riots in Vietnam also show the risk of overseas plant construction. The other A-share textile spinning head, Huafu Color Spinning, is building a production line in Vietnam and is expected to put into production in the fourth quarter. The company’s directorate secretarial office official said that the company has not been affected by the Vietnam incident.