HO CHI MINH – More than two-thirds of garment and footwear suppliers in Vietnam have been penalised by buyers for delivering products late – despite many of the delays been caused by Covid-19 restrictions. A survey by Vietnam Leather, Footwear and Handbag Association (LEFASO) and the Vietnam Textile and Apparel Association (VITAs) found some suppliers have also been hit with compensation claims for breach of contract. Just over a fifth (21 per cent) of respondents said they saw orders cancelled due to delays but no other demands were made.
Vietnam has been in and out of a series of draconian lockdowns in recent months which has caused major disruption in its garment and textile industries. This is leading to delays in orders and hampering the planning of major brands such as Nike and Adidas in the run up to Christmas.
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