COVID-19 restrictions in Vietnam impacting large sportswear brands

21 Jul '21

2 min read

Pic: Shutterstock

COVID-19 restrictions imposed in Vietnam by the local authorities are heavily impacting manufacturing as factory shutdowns and labour shortages are on the rise as new COVID cases are reported. Several factories which produce goods for some of the largest international brands have reportedly shut operations to prevent further increase in COVID-19 infections.

Most of the cases have been registered in the southern part of the nation, predominantly in Ho Chi Minh, Binh Duong and Dong Nai provinces, according to media reports in the country.

Nike and Adidas are among the more prominent footwear and apparel brands which have suppliers in Ho Chi Minh and Dong Nai provinces, with operations severely affected as the provinces are under lockdown and factories were shut till July 20 as per last update, according to Reuters.

As per the latest annual reports, 50 per cent of Nike’s shoes are manufactured in Vietnam, and the current disruptions have created shortages for the largest footwear brand in the world. The next big supplier, Indonesia, manufacturers 24 per cent of Nike’s shoes. Adidas also reports sourcing close to 42 per cent of its shoes from Vietnam followed by 29 per cent from Indonesia.

COVID-19 infections in Vietnam have been rising continuously for the past few days, registering 5,427 new cases on July 20, 2021. The provinces of Ho Chi Minh and Dong Nai are planning to continue restrictions and Ho Chi Minh City is planning to implement more severe ones than the current directives. This will further disrupt manufacturing operations in these provinces and can continue shortages for several international brands.

Fibre2Fashion News Desk (RKS)

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