US buyers giving tough time to Vietnam textile firms
US companies are giving tough time to Vietnamese garment producers by not clearing their dues. For May Song Hong, dues outstanding with the American companies have risen by 19.5% in the first quarter.
Vietnam
US companies are
giving tough time to Vietnamese garment producers by not clearing their dues. Amidst
the Covid-19 pandemic, the parent company of the famous fashion firm New York
& Company, has been filed for bankruptcy due to which it could only repay
17% on the dollar to Vietnamese garment maker May Song Hong. Its provision for
bad debt has been increased to over VND 224 billion. Here, the revenue in the
first quarter increased merely by 1%.
The dues
outstanding for Thanh Cong Textile Garment Investment Trading have increased by
43% since the beginning of the year. It is recorded at VND 405 billion. As per
the record, a quarter of this amount belongs to two subsidiaries of US retailer
Sears, which have also filed for bankruptcy in the year 2018.
According to the
General Statistics Office, exports of textile and garments rose to $9.5 billion, which
is a 9% increase as compared to the first quarter of last year.
Source: VNE
Express International
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