Key suppliers for main firms like Netflix and Nike have been pressured to host staff on website or stop manufacturing as Covid-19 retains spreading, particularly within the southern area.
Taiwanese motherboard producer ASRock within the southern province of Binh Duong estimates that its July revenues would take a 5-20 % hit after it briefly stopped manufacturing on Monday, in line with a safety submitting.
The corporate, which is a server supplier for streaming big Netflix, would shift manufacturing to different contract producers whereas ready for native approval of its Covid-19 bubble, president Hsu Lung-luen informed Nikkei Asia.
Ching Feng Dwelling Fashions, which makes curtains for retail chain Walmart and furnishings big Ikea, acknowledged in Monday safety submitting in Taipei that its manufacturing unit in Binh Duong Province would shut from July 19 to August 2. It additionally cited the necessity to meet a authorities requirement that staff eat, stay, and work on-site.
Nike’s contract producer, footwear maker Pou Chen, and South Korea’s Changshin Vietnam, have shut down their HCMC factories final week, which “could exacerbate the provision chain disruptions,” S&P International Market Intelligence stated in a report.
Samsung Electronics, which makes half of its smartphones in Vietnam, has additionally suspended work at three crops in HCMC and briefly minimize its workforce from 7,000 to three,000.
AirPods assembler GoerTek and South Korea’s Kumho Tire have arrange lodging for his or her employees to sleep on website.
As HCMC and southern provinces bear strict social distancing orders for no less than two weeks, factories are scrambling to maintain their manufacturing going whereas making certain employees’ security.
HCMC accounts for almost 65.6 % of over 74,500 circumstances that Vietnam has recorded within the newest Covid-19 wave which started April 27.