Southeast Asian epidemic affects Japanese manufacturers' supply chain

Southeast Asian epidemic affects Japanese manufacturers' supply chain

The epidemic situation in Southeast Asia is still not optimistic. There are still hundreds of thousands of confirmed cases of COVID-19 in Vietnam, Malaysia, the Philippines and Thailand. The outbreak of the epidemic and the isolation measures implemented due to the epidemic have dealt a huge blow to the manufacturing industry in the region.

 

Global industries including clothing, footwear, electronics, and chips all have factories in Southeast Asia. The current outbreak has forced the region's manufacturing industry to shut down. Although Vietnam recently has plans to lift the lockdown "with illness", the several months of shutdowns still have a huge impact on the global supply chain. Recently, there was an analysis that global sports giants Nike and Adidas will suffer hundreds of millions of losses due to the shutdown of Vietnam's epidemic.

 

Recently, some media reported that the supply chain of Japanese manufacturers has also been disrupted by the epidemic in Southeast Asia . Due to the impact of the epidemic , social isolation measures in Vietnam, Malaysia and other countries have caused damage to the upstream and downstream of the industrial chain, among which the clothing and semiconductor industries have been the most affected .

 

Malaysia is a place where many chip packaging and testing operations are carried out , and the outbreak has caused the shutdown of many types of semiconductor factories. Toyota Motor of Japan said that it was precisely because of the chip shortage and the disruption of the supply chain by the new crown epidemic in Southeast Asia that the company will cut its global automobile production by 40% in September from the originally planned less than 900,000 vehicles. Due to the impact of the epidemic, Toyota Motor of Japan will reduce production by about 360,000 vehicles in September .

 

In addition, Toyota will suspend production at its overseas factories and 14 Japanese factories, and some production lines will be closed for the entire month. Hyundai and Honda also reported that their sales have declined due to the epidemic and tight supply of parts. The only effective way to alleviate the supply chain crisis is to effectively control the epidemic in Southeast Asia.


However, a few days ago, there was news that Vietnam is preparing to lift the lockdown "with the disease". The epidemic control in recent months has not brought about a significant improvement in the epidemic situation in the area, and has also seriously affected the local economic development. But I wonder if lifting the lockdown "with the disease" can ease the local pressure?



Southeast Asia Epidemic

Supply chain disruption, Japanese manufacturers' supply chain affected

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