Taipei, Sep 20 (CNA) Several Taiwanese manufacturers in Vietnam have struggled with production issues in recent weeks as the southern part of the country remains stranded due to the latest wave of COVID-19 cases there -low.
Pou Chen Corp., an original design maker for international footwear brands such as Nike, Adidas, Asics, New Balance, Timberland and Salomon, recently said that production from its factory in Ho Chi Minh City in the south from Vietnam, was about to stop.
As a result, the Taiwanese company said, it expects a significant drop in revenue from July to August at this factory.
If the COVID-19 outbreak in southern Vietnam eases in the fourth quarter and employees are allowed to return to work, they may be able to work overtime, which would offset losses in the third quarter, a said Pou Chen.
Ho Chi Minh, one of Vietnam’s main shoe production areas, is the epicenter of the current COVID-19 outbreak in the Southeast Asian country, according to the government.
In the latest wave, Vietnam reported more than 10,000 new cases of COVID-19 per day and hundreds of deaths. As of Monday, the country had confirmed a total of 687,063 cases and 17,090 deaths, according to the Johns Hopkins University Coronavirus Resource Center.
Data showed that 340,316 of these cases and 9,317 deaths had occurred in the past 28 days.
In the south of the country, including Ho Chi Minh, the government’s strict lockdown order was extended last week
for at least two more weeks, restricting the movement of people.
According to a Pou Chen executive from the Vietnamese subsidiary, the company has followed government orders and tried to speed up the vaccination of its 100,000 workers in the country, in an effort to help curb the COVID epidemic. -19.
The Pou Chen subsidiary manufactures shoes not only in Ho Chi Minh but also in Dong Nai and Tay Ninh provinces in southeast Vietnam and in Tien Giang province in the south, according to the executive.
Another Taiwanese contract shoe maker, Feng Tay Group, which also supplies Nike and other international brands, said production at its Vietnamese factories had been suspended for about two months.
Feng Tay said he planned to reallocate production to China, Indonesia and India, but his factories in those three countries are nearing full capacity, so he decided to wait until he was cleared to resume production. work in Vietnam.
Its customers are fully aware of the situation in Vietnam and are ready to wait, the company added.
Meanwhile, Fusheng Co., a Taiwanese company that manufactures golf club heads, also said production in Vietnam has been on hold since late July, but was optimistic that it will gradually return to normal in the fourth quarter. given that the vaccination rate in Vietnam was on the rise.
Fusheng said he is working to increase production when the Vietnamese government lift the lockdown and production can resume.
At present, some of the production has been reallocated to China to make up for the loss in Vietnam, but this has been limited as its Chinese factories are near full capacity, the company said.
Demand for golf club heads is currently strong in the United States, Japan and South Korea, Fusheng said.