7 October 2021

Vietnam - Industry in Vietnam faces continued lockdown struggles

While the country is in the midst of controlling a severe outbreak of the Covid-19 Delta variant, production in Vietnam continues to struggle, with companies anticipating further delays to goods, reports ILM.



Nike Chief Financial Officer Matt Friend declared that it would take “several months to ramp back to full production” and, during a call with analysts, he highlighted that the company had already lost around 10 weeks of production since mid-July.

During the current lockdowns, factories have been able to continue operating if they provide on-site accommodation or transport for workers, but many have been unable to take on this additional cost alongside increased transportation costs and periods of lost production.


Although the Vietnamese Prime Minister has announced that restrictions will begin to ease this week, Phan Thi Thanh Xuan, General Secretary of the Vietnam Leather, Footwear and Handbag Association (Lefaso), has stated that the industry will not see a positive outlook until at the least the end of the year, if not into 2022.

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