Analysis: World’s apparel, sneakers hub Vietnam struggles as US ban on Xinjiang cotton bites

As demand declined, Vietnam’s clothing and footwear companies have lost roughly 90,000 jobs since October due to tighter U.S. Xinjiang import bans.

A Reuters study of official U.S. data found that the Uyghur Forced Labor Protection Act (UFLPA) affected Vietnam hardest among textile exporters. Since June, enterprises must confirm they don’t employ Xinjiang’s forced labor-produced raw materials or components.

The Southeast Asian manufacturing powerhouse, which supplies huge brands like Gap (GPS.N), Nike (NKE.N), and Adidas (ADSGn.DE), is already struggling due to a reduction in apparel demand from richer nations. The U.S. clampdown hurts even more.

U.S. customs statistics dated April 3 showed that 80% of the $15 million worth of apparel and footwear shipments held up for UFLPA checks were from Vietnam, and only 13% were cleared for entrance.