Starting from July this year , Vietnam began to suffer from a large-scale epidemic, with the number of new infections increasing every day, especially in Ho Chi Minh City, the country's economic center. The number of infections remained high. The local government implemented strict epidemic prevention and control measures, and local factory machines were shut down for nearly three months. Until the end of September, there was news that Vietnam was ready to lift the blockade.
Nearly three months of epidemic prevention and control have had a serious impact on Vietnam's economy. Recently, Ho Chi Minh City, Vietnam announced the lifting of nearly three months of epidemic prevention measures from October 1, and the city's industrial parks began to resume production.
However, according to relevant media reports, as the epidemic has not yet ended, the government has lifted the epidemic prevention and control measures. More than 2 million workers have fled the industrial areas with severe epidemics and returned to the countryside. Even though the return-to-work date stipulated by the factory has arrived, the resumption rate is only about 30%. It is more difficult to recruit workers at this time, and the shortage of labor has made the production plans of a considerable number of manufacturers full of challenges.
International sports brand giants Nike and Adidas both have their OEM factories in Vietnam. The lockdown due to the epidemic has seriously aggravated the global supply chain crisis. In addition, the third quarter is the peak season for global shipments, and the epidemic in Vietnam has had a huge impact on brand sales. Some analysts say that the epidemic has caused Nike to reduce production by at least 180 million pairs.
Not only clothing and shoes, but also electronic products have been greatly affected by the epidemic. Apple’s new mobile phones have just been released and the market demand is on the rise. The shutdown of parts supply factories in Vietnam will also hinder the delivery of Apple’s new products.
Although Vietnam has adopted epidemic prevention and control measures for nearly three months, the epidemic situation in the country, especially in Ho Chi Minh City, is still not optimistic, with nearly a thousand new crown patients confirmed every day.
Vietnam has now announced the lifting of the lockdown in order to resume production and revive its domestic manufacturing industry. However, the failure of millions of workers to return to work on time remains a major problem for Vietnam and is expected to impact the epidemic prevention results of the past three months. Vietnam Unblocks Workers flee Supply chain crisis intensifies |
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