From shoes and sweaters to car parts and coffee, Vietnam’s strict and lengthy coronavirus lockdown has sparked products shortages among worldwide brands such as Nike and Gap which have grown increasingly dependent on the Southeast Asian nation’s manufacturers.
The snarl-ups at factories in Vietnam are part of a broader crisis around the planet that is sending inflation surging and raising concerns about the pace of recovery in the global economy.
Italian director of Hung Yen Knitting & Dyeing, a fabric mill in east of Hanoi, worries daily if the factory can keep the lights on.
Its output plunged by 50% when Vietnam’s latest devastating virus wave first struck in spring, and it faces perpetual problems securing the yarn it needs for its synthetic material.
“At first we were lacking people (to work) because everyone was stuck at home,” said Anselmi, whose company’s fabric is later used in swimwear and sportswear for customers including Nike, Adidas and Gap.
Now, “travel restrictions have jeopardised all logistics in and out… this has created long, long delays,” she said. “We only survive if we have the stock”.
The delays and restrictions are among a major headache for foreign businesses, many of which have pivoted to Southeast Asia from China in recent years – a trend accelerated by the bruising trade war between Washington and Beijing.
Nike – which warned last week it was struggling with shortages of its athletic gear and cut its sales forecasts – pointed at Vietnam, among others, saying 80% of its factories in the south and nearly half of its apparel plants in the country had shut their doors.
