During the epidemic, due to the impact of various blockade measures, the global supply chain will inevitably come under pressure. While the public’s attention is focused on the world’s top economies such as the United States and the European Union, Southeast Asia, as an important part of the global supply chain, has been hampered by the rebound of the epidemic. Among them, Vietnam, Malaysia and other countries The most serious.
Statistical data from authoritative organizations show that as of 10:00 on September 1, the cumulative number of confirmed cases in Vietnam has reached 449,489, with 14,224 new cases daily; the cumulative number of confirmed cases in Malaysia is 1,725,357 , the daily number of new cases was 19,268. You must know that Vietnam and Malaysia have a total population of just over 30 million, and nearly 20,000 new cases per day are already a “very bad” situation for these two countries.
The epidemic is raging, and Vietnam’s manufacturing is in crisis
Let’s first look at Vietnam . According to local media reports, with the epidemic rebounding, Vietnam’s manufacturing industry is facing three major crises: loss of workers, loss of orders, and loss of capital.
The loss of workers refers to the fact that under the attack of the epidemic, almost the whole country is in a state of social isolation, and “no one goes to work” in factories; the loss of orders refers to the loss of multinational brands after the foundry factory ceased production. orders cannot be delivered on time, and these orders may flow to other countries; capital loss refers to the fact that under the unstable epidemic situation, most overseas investors have adopted a wait-and-see attitude towards Vietnam’s business.
Taking Ho Chi Minh City as an example, data shows that in the first seven months of this year, the number of companies suspended operations in the city reached 12,071, an increase of 25.7% compared with the same period last year. It only accounts for about 30% of the number of suspended companies in the country (more than 40,000).
It should be mentioned that Vietnam is currently the third largest producer of footwear products in the world, with well-known multinational companies such as Nike and Adidas All brands have cooperative manufacturers in Vietnam.
So after many OEMs in Vietnam were suspended, the supply of these brands was affected to varying degrees. S&P Globa issued a warning in July that about 50% of production capacity Nike in Vietnam is likely to face the risk of out of stock; by the end of this year, Adidas may lose 500 million euros in sales due to out of stock.
After being “implicated”, these brands are also very anxious. In mid-August, more than 80 American clothing and footwear companies, including Nike and Adidas, signed a letter requesting the government to donate more vaccines to Vietnam to help local companies tide over the difficulties. However, this request did not receive a positive response. .
The political situation is unstable, and many businesses in Myanmar have closed down.
Myanmar Yang Ms. Wu, the person in charge of a garment factory in Guang, told reporters that the epidemic had little impact on the operation of factories in Myanmar. The biggest factor was the political instability at the beginning of the year. Garment factories mainly purchase raw materials from China, receive orders from Europe, the United States, Australia and other places, process the finished clothes and then send them to the international market. The political situation was unstable at the beginning of the year, and many companies closed down. Due to the uncertainty about the future, many customers did not dare to place orders at Myanmar factories. From May 20 to July 20, Ms. Wu’s garment factory did not accept orders for two full months. to a new order.
To make matters worse, rising raw material and freight prices have further eroded the profits of Myanmar’s garment factories. Take shipping as an example. In the past, Ms. Wu purchased raw materials from China and shipped them to Myanmar for about US$2,000 per container, but now it has increased to about US$4,000 to five thousand US dollars per container. Sea transportation is expensive, and land transportation is also forced to detour through Vietnam, Cambodia and then to Myanmar due to epidemic prevention and control at the China-Myanmar border.
The textile industry is a key industry in many Southeast Asian countries. As a labor-intensive industry, the textile industry is also one of the first industries to be affected by the epidemic. A large number of workers were suspended from work and quarantined, resulting in a sharp decline in textile production in many Southeast Asian countries. Analysts pointed out that as an important part of the global industrial chain and supply chain, the rebound of the epidemic in Southeast Asia is inevitably exacerbating the risk of disruption of the global industrial chain and supply chain.
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