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Vietnam garment units under severe stress due to pandemic lockdowns


The apparel, textile, footwear, and electronics industries in Vietnam have been most harshly affected by COVID-19-related shutdown. There are more than 6,000 factories in Vietnam, which employ more than three million workers. Production shutdowns at footwear manufacturers have already caused supply chain disruptions for major brands, some of whom have begun using airfreight to get their products out of Vietnam as quickly as possible amid a shipping crunch. Also at risk of interruption are supply chains of other large companies that have their products manufactured in factories in Vietnam. The situation is likely to worsen in the coming weeks as the flow of cargo through Vietnamese ports increases. Should logistical operations deteriorate while production continues, there is a risk of warehouse space becoming scarce.

As many companies run operations at their manufacturing facilities amid stringent COVID-19 measures, thousands of workers have been locked down at the factories with sleep facilities and food provided by the company. Should the situation continue, exhaustion of workforce might occur, as not all workers are able or willing to spend a few months at the workplace. For a factory that has more than 500 workers it is not quite worth it in terms of organizing the food and living conditions in these makeshift conditions.