The world’s largest manufacturer of branded sports footwear, Taiwan’s Pou Chen Corp, is facing a labour shortage and manufacturing disruption in Vietnam, jeopardising its plan to resume full operations this month.
Since July, production at Pouyuen Vietnam’s factories in Ho Chi Minh City, Long An and Dong Nai, which are hotspots for the country’s coronavirus outbreak, has been reduced. Nike Inc. and Adidas AG and other famous brands are few among its clients.
‘About 6% of the total workforce has resigned,’ said Lu Chi Yuan, director of Pouyuen Vietnam, following a meeting between the company and authorities in Ho Chi Minh City.
‘We’re dealing with labour shortages, large order delays, and disruptions in production and exports,’ Lu added.
Until the middle of this year, Vietnam had one of the best coronavirus containment records in the world, with minimal disruption to the country’s vital manufacturing sector.
After an outbreak in the economic hub of Ho Chi Minh City intensified and spread to surrounding manufacturing provinces in May, the country’s profile changed.
When COVID-19 curbs were lifted in October, tens of thousands of workers left industrial hubs, complicating Vietnam’s efforts to resurrect its key manufacturing sector.
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