More than 70,000 Vietnamese companies have closed down, and international big names have transferred part of their production capacity back to China!
More than 70,000 Vietnamese companies have closed down, and international big names have transferred part of their production capacity back to China!
With the resurgence of a new round of health incidents, businesses and factories in Vietnam have even more "closed up."
According to the Ministry of Investment and Planning of Vietnam, in the first half of this year, a total of 70,209 companies in Vietnam closed down, an increase of 24.9% over last year. This is equivalent to 400 companies failing every day
According to the Wall Street Journal, in order to reduce the supply risk caused by the epidemic, the American footwear provider Wolflin Group has transferred part of its production capacity back to China this year. The person in charge of the company said that the current supply situation in Vietnam is very unstable. .
In this regard, the chief investment officer of a Vietnamese company also said that Vietnam is now facing some difficulties, but there should be vaccines in the next few months. If more people can be vaccinated, and everything goes well, it may reach the end of this year. At the beginning of next year, production will return to normal. There is at least half a year left, and companies and factories can't afford to wait.
Under the shutdown, many companies' orders are constantly losing, so these companies can only consider reducing their production capacity and capital investment in Vietnam.
Among them, Jabil said that many of its business partners have moved orders to other countries such as China and Singapore due to the impact of the epidemic. Obviously, this is also a big challenge for Vietnam, and the outflow of capital will also cause greater economic losses in Vietnam.
In August, more than 80 American apparel and footwear companies, including Nike and GAP, have jointly sent a letter to Biden, requesting the United States to speed up its vaccine donation to Vietnam.
The latest news shows that Cuba will provide Vietnam with vaccines and technology transfer, and the relevant Vietnamese authorities have recently admitted some problems with the current epidemic prevention and control measures and may consider adjustments.
