Manufacturing at several of Nike’s main operations in Vietnam has been impacted as Covid has expanded across locations. The company declined to comment on whether the outbreak could lead to a shortage of shop inventory.
About half of Nike’s shoes were created in Vietnam in the previous fiscal year, causing supply chain challenges for the corporation. Infections have been on the rise in Vietnam since April, with multiple virus clusters in the country’s industrial zones. The spike of instances registered at suppliers’ plants in the country might also harm Apple, Samsung, and Puma.
Pou Chen Corp, which also makes footwear for Adidas and is the leading manufacturer of branded trainers, is one of Nike’s worst-affected suppliers in the region. Due to an outbreak of illnesses, its halted operations at its plant in Ho Chi Minh City on Wednesday. Pou Chen’s Pouyuen Vietnam factory will be closed for ten days, according to a statement from the country’s health ministry.
The factory, which employs 56,000 people, is the city’s largest employer. According to the ministry of health, it would be impossible to stay open and organize for its employees to sleep at work as required by authorities to prevent the transmission of disease.
In the United States, Nike employs roughly 450,000 people, with 80 percent of them being women.
Puma, whose footwear is also made in the nation, could face similar challenges. In the worst-affected factories in Vietnam’s northern region, Apple and Samsung have large suppliers. Apple has yet to answer a BBC request for comment on whether the pandemic could result in shop stock shortages, and Adidas, Puma, and Samsung have yet to respond.
Samsung manufactures over 50% of its phones in Vietnam, and three plants in Ho Chi Minh City have been forced to shut down. Samsung Electronics plans to have employees sleep at the factory, according to the health ministry’s website, and has reduced its workforce from 7,000 to 3,000.
Source: BBC News