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Vietnam Factories Set to Stay Open Despite Omicron Surge

by 198 Vietnam News
February 14, 2022
in VIETNAM CHINA NEWS
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  • Vietnam factories are set to remain open regardless of a COVID-19 surge. 
  • Tens of millions of manufacturing unit staff have been absolutely vaccinated, the federal government stated. 
  • It may very well be excellent news for retailers who skilled lengthy delays final yr on account of manufacturing unit shutdowns. 
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Vietnamese factories making every little thing from footwear to smartphones are anticipated to proceed manufacturing regardless of report COVID-19 infections, reversing a coverage of sweeping lockdowns final yr that hobbled world provide chains for Western retailers.

One of many world’s largest garment makers, Vietnam reported greater than 26,000 new infections on Sunday, or about double the height final yr, when factories supplying manufacturers reminiscent of Nike, Zara, Apple, and Samsung have been shut for months.

However not like 9 months in the past, when the Delta variant was spreading by a largely unvaccinated inhabitants, now tens of millions of manufacturing unit staff have been absolutely vaccinated and the Omicron variant is proving much less extreme, the federal government stated.

“The danger of widespread lockdowns could be very low this yr as Vietnam has efficiently carried out its COVID-19 vaccination marketing campaign,” Dang Duc Anh, director of the Nationwide Institute of Hygiene and Epidemiology, advised Reuters.

Vietnam has been enjoyable curbs in latest months, with faculties re-opening final week and the federal government saying on Sunday it will elevate restrictions on arriving worldwide passenger flights. 

Greater than 76% of the inhabitants has acquired no less than two vaccine doses, up from 3.3% early in September final yr, the well being ministry says.

The American Chamber of Commerce in Hanoi, which represents U.S. companies and final yr urged the federal government to ease its curbs, is anticipating a greater 2022, stated Adam Sitkoff, its govt director.

“I don’t count on to see further countrywide lockdowns as critical instances in most components of the nation are at a manageable stage and the authorities have realized that economy-crippling restrictions aren’t sustainable,” Sitkoff advised Reuters.

The federal government is focusing on financial progress of 6% to six.5% this yr, up from 2.5% in 2021.

Easy manufacturing unit operations in Vietnam, the second largest exporter of garments and footwear to america after China, may also assist unencumber provide chain bottlenecks which can be pushing up inflation around the globe.

“If Vietnam can preserve a robust manufacturing functionality and manufacturing unit output, this may actually assist the worldwide provide chain, particularly for sectors like agriculture, textiles, and electronics shoppers,” stated Duc Minh Nguyen, a companion at accounting agency EY.

Vietnam gained reward early within the pandemic for curbing infections with its tight controls, however a flare-up final summer time attributable to the Delta variant saved tens of millions of staff at dwelling amid lockdowns in Ho Chi Minh Metropolis and neighboring industrial provinces.

In September, on the peak of the lockdowns, companies started contemplating shifting manufacturing elsewhere.

Lululemon, a Canadian clothes retailer, shifted manufacturing out of Vietnam in September. Nike, which sources half its footwear from the southeast Asian nation, lower its 2022 gross sales forecast on account of manufacturing unit closures there.

Now, 90% to 95% of garment and textile staff have returned to work after the Lunar New Yr vacation, stated Truong Van Cam, deputy chairman and normal secretary of the Vietnam Textile and Attire Affiliation.

Vietnam’s manufacturing unit staff, who earn on common $330 per thirty days, are hoping to make up for earnings misplaced final yr.

“Issues are fairly clean now … there are various orders that want delivering so we are able to work extra time to earn extra,” stated Nguyen Van Hoang, 28, who works at a leather-based manufacturing unit in Ho Chi Minh Metropolis.

“I do not assume manufacturing unit lockdowns will change into a factor sooner or later.”

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