60% of the raw materials are imported from China, but Vietnam launched an investigation on Chinese textile raw materials! what's the situation?

In recent years, Vietnam's textile industry has developed rapidly. In 2018, it has become the world's third largest textile exporter after China and India. However, in 2019, although Vietnam's textile exports increased, it was only 39 billion U.S. dollars, failing to reach the target of 40 billion U.S. dollars that year. This year, due to the impact of the epidemic, Vietnam’s textile industry has continued to experience problems. At this time, Vietnam, which relies on Chinese raw materials, made unexpected actions against Chinese textile raw materials.　　 Latest: 60% of Vietnam, which relies on China, initiated an investigation on China's textile raw materials. What happened? According to the decision No. 1079/QD-BCT recently announced by the Ministry of Industry and Trade of Vietnam, Vietnam will initiate an investigation on some polyester filaments (also known as filament yarns), textile raw materials from China, India, Indonesia, and Malaysia. . This investigation was mainly applied by Vietnam's leader in the industry.　　 It is understood that although the industry leader accounts for 67.4% of Vietnam's total polyester long fiber production, it still cannot compete with similar products from China, India and other countries. Therefore, the company hopes to reduce its competitive advantage from other markets such as China through investigations, and finally realize its goal of developing in Vietnam.　　 Although Vietnam can produce 350,000 tons of filament yarn every year, its domestic demand is only 270,000 tons, which can fully meet the domestic demand. However, because Vietnamese products do not have much competitive advantage in the country, Vietnam has long relied on imported polyester long fibers, and its dependence on foreign countries has increased year by year. According to data from the General Administration of Customs of Vietnam, the number of imports of such products has gradually increased from 154,000 tons in 2017 to 185,000 tons in 2019, with the highest dependence on China.　　According to Vietnamese statistics, in 2019, China firmly occupied 60% of Vietnam's imported fabrics and 55% of the fiber market. The chairman of the Vietnam Textile and Apparel Association (VITAS) also revealed that Vietnam relies heavily on Chinese raw materials, saying that 55-60% of the raw materials of the Vietnamese textile industry are supplied by China, especially the raw materials, yarns and fabrics of clothing are mainly imported from China. When Vietnam is so dependent on Chinese raw materials, why does Vietnam initiate an investigation on Chinese raw materials? Vietnam’s textile industry continues to have problems: in February it was worried about China’s supply of raw materials, and in March it was worried about the European and American refunds. Vietnam initiated an investigation into China’s textile raw materials at this time. This is mainly due to the continuous problems in Vietnam’s textile industry in recent months. I also hope to take this opportunity to vigorously support domestic companies and reduce their dependence on raw materials from China and other countries, so that the dilemma of February will no longer appear in the future.　　 When China delayed the resumption of work in February, the Vietnamese textile industry faced a serious shortage of textile raw materials. At that time, the chairman of the Vietnam Textile and Apparel Association (VITAS) even stated that if the Vietnamese textile industry cannot import raw materials from China and other places by the end of March, many companies will have to announce the suspension of work in April. However, as China succeeded in controlling the epidemic, the rate of resumption of work continued to rise. At the end of February, China had resumed most of the supply of raw materials, which greatly relieved Vietnam’s urgent need.　　 However, one wave has not settled, another wave has risen. In March, when the supply was resumed in China, Vietnam finally did not need to worry about the shortage of raw materials. When it was about to step up production, European and American companies, which were the center of the global epidemic, came to Vietnam to charge back their orders. According to the vice chairman of the Vietnam Textile and Apparel Association (VITAS), as the two largest markets for Vietnam's textile exports, European Union and American customers have successively called back orders or delayed delivery of orders.　　 Due to the drastically reduced demand from the two major markets in Europe and America, according to Vietnam’s forecast, Vietnam’s exports to the EU will drop by 8% in the first and second quarters of 2020. Many Vietnamese textile companies are beginning to plan to reduce production lines and reduce wages and hours to reduce costs in order to cope with possible large-scale chargebacks. Article Keywords: 　Vietnam Yarn Import China Investigation International Observation