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 Fall in production in Vietnam disrupts global supply chain: HSBC

Fall in production in Vietnam disrupts global supply chain: HSBC

2021-09-15

Source:https://www.fibre2fashion.com/

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Pic: Shutterstock

Pic: Shutterstock
The decline in production in Vietnam’s textile, leather and footwear industries due to COVID-19 has affected the global supply chain, according to HSBC, which recently said the government plan to live with COVID-19 depends largely on the ability to achieve a broad vaccine coverage rate. Nearly 35 per cent of textile-garment factories in the country are closed, according to the Vietnam Textile and Apparel Association (VITAS).

The market share of its leather and footwear industry is 15 per cent after doubling in the last decade. Consumers in the United States and Europe will suffer from the disruption, especially as the festive season approaches, according to a report in a Vietnamese newspaper.

Adidas is facing difficulties as Vietnam accounts for nearly 30 per cent of its global supply. Its Taiwanese supplier Pouyuen, which has factories in Vietnam, is among the companies to suspend production.


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