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  • Writer's pictureBy The Financial District

Apparel Hub Vietnam Squirms As U.S. Ban On Xinjiang Cotton Bites

Tighter US rules to ban imports from China's Xinjiang are exerting pressure on Vietnam's apparel and footwear makers, hitting a sector that has cut nearly 90,000 jobs since October in the global manufacturing hub as demand slowed, Francesco Guarascio and Khanh Vu reported for Reuters.

Photo Insert: Vietnam is a major supplier to big brands such as Gap, Nike and Adidas.

Among garment exporters, Vietnam has faced the worst hit from the Uyghur Forced Labor Protection Act (UFLPA), a Reuters review of official US data showed.

The law, in place since June, requires companies to prove that they do not use raw materials or components produced with Xinjiang's forced labor.

The clampdown hurts as it comes on top of a drop in clothing demand from rich nations that has already dented industrial output and exports from the Southeast Asian manufacturing powerhouse, a major supplier to big brands such as Gap, Nike and Adidas.

Of the $15 million worth of apparel and footwear shipments held up for UFLPA checks, more than 80% were from Vietnam, and only 13% of its cargoes were cleared for entry, US customs data showed.

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