Starting from the end of April this year, the epidemic in Vietnam began to worsen. Especially in July, the number of confirmed cases and deaths from COVID-19 in Vietnam has increased explosively.
According to the latest news from the Hanoi Municipal People’s Committee of Vietnam on August 6, since August local time From 0:00 on the 8th, the social isolation status in Hanoi City will continue to be extended until August 22.
According to a report by Japan Broadcasting Corporation (NHK) on August 7, the COVID-19 epidemic in Southeast Asia is becoming more and more serious. A Japanese chamber of commerce in Vietnam learned after conducting a questionnaire survey on local Japanese companies. To date, more than 60% of companies are considering arranging for local employees and their families to return to Japan.
Continuing the blockade, 70,000 companies closed down
According to “Vietnam Economy” reported:
The fourth wave of the new coronavirus mutant strain in Vietnam is fierce, leading to the temporary closure of a number of industrial parks and factories, and the interruption of production and supply chains in various places due to the implementation of social isolation. Vietnam Industrial production growth slowed down.
19 southern provinces and centrally-administered municipalities implemented social isolation in accordance with government instructions. Industrial production dropped sharply in July, with Ho Chi Minh City’s industrial production index falling by 19.4%.
According to the Ministry of Investment and Planning of Vietnam, in the first half of this year, a total of 70,209 companies closed down in Vietnam, an increase of 24.9% over last year. This is equivalent to 400 businesses closing every day.
It is reported that the main production bases of global brands from Toyota to Nike in Vietnam have been forced to suspend operations due to the blockade; electronic companies including Samsung and Foxconn It is also facing production difficulties due to the lockdown.
In addition, as the world’s second largest textile and apparel exporter, about one-third of Vietnam’s textile and apparel factories have been closed due to the epidemic. According to the Vietnam Textile and Garment Association (Vitas), 30% to 35% of garment factories in the country are currently closed, with Nike being one of the big brands.
Global supply chains may face greater disruption after experiencing one of the most challenging years in peacetime history.
The epidemic has caused the suspension of production in Vietnamese factories
Due to the impact of the epidemic, Vietnam The foundry is close to “zero output”, and local factories have stopped production, causing a “supply cutoff” crisis.
Coupled with the rising demand for Asian goods, especially Chinese goods, from U.S. importers and consumers, port congestion, delivery delays, and slot shortages have become increasingly problematic. The serious situation has not improved yet. U.S. retailers can only maintain inventory for about a month, setting a record for the lowest inventory in 30 years (since 1992).
“The epidemic has caused factory shutdowns in South and Southeast Asia, exacerbating the risk of global supply chain disruptions. Consumers in the United States may soon find that local The shelves are empty.” US media recently warned in reports of the difficulties and impact the epidemic has brought to American consumers.
According to Vietnam Express Network, taking Nike shoes as an example, under the impact of the fourth round of the epidemic, Nike’s foundry in Vietnam may face a “zero output” crisis . There are about 200 contract manufacturers in Vietnam, and the two largest contract OEMs, Pou Chan Group and Chang Shin Company, have completely suspended operations.
Pou Chan Shoes, which has a factory in Ho Chi Minh City alone, employs about 62,000 Vietnamese workers. Nike shoes such as “coconut shoes” and sneakers, which are popular among young people, are produced in this factory. In addition, the report also wrote that in the financial report statistics released in June this year, in the past fiscal year, Nike shoes produced in Vietnam accounted for 82% of the US consumer market. The shutdown of factories in Vietnam has been cited as the main reason for the suspension of supply of Nike shoes in the United States. </p
