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US buyers giving tough time to Vietnam textile firms

May 13, 2021
US buyers giving tough time to Vietnam textile firms

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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