Apparel / Textiles & Accessories

Ho Chi Minh City, Vietnam has opened factories since October, and companies have resumed operations in compliance with the epidemic prevention requirements. However, unexpectedly returning home after being unblocked. Ho Chi Minh City and neighboring provinces may face shortages of labor, further cracking down on the already fragile global supply chain.

40% of the workers in the clothing and shoe factory return to their hometown. I don’t know how many will return.

The Vietnamese government stated on its official website that thousands of workers have left Ho Chi Minh City, the commercial center of Vietnam, and nearby Binh Duong, Dong Nai and Long An provinces.

When the epidemic broke out in Vietnam some time ago, workers were restricted to staying in the factory dormitories. When Ho Chi Minh City relaxed epidemic prevention and reopened the factory on October 1, there was a sudden wave of workers returning home. At the time of the exodus of workers, industry leaders also warned that a labor shortage is about to occur.

According to data from the Ministry of Public Security of Vietnam, as many as 2.1 million workers in the industrial zone hope to return to their hometowns. At present, officials have arranged hundreds of buses to return them to rural areas. Workers who have not been vaccinated will be sent to the isolation center after returning home. .

According to data from the American Apparel & Footwear Association (American Apparel & Footwear Association), which represents more than 1,000 brands, Vietnam has been the second largest supplier of apparel and footwear in the United States for many years.

Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), said that in the remainder of 2021, the labor shortage rate in the garment industry in Vietnam may be as high as 37%.

Phan Thi Thanh Xuan, vice chairman of the Vietnam Leather, Footwear, and Handbags Association, said that about 40% of the footwear foundry workers have returned to their hometowns, and it is not clear how many of them will return.

70% of 130,000 employees have been vaccinated, and Baocheng Vietnam shoe factory is expected to resume work in October

After Baocheng Group’s Vietnam shoe factory was shut down for a long period of time, Ho Chi Minh City, Vietnam, announced the release of the seal. The Baoyuan Shoe Factory, a subsidiary of its subsidiary Yue Yuen Industrial, has obtained the local government’s approval. It will be divided according to the requirements on the 6th. Resumption of work in phases.

Baocheng emphasized that it will actively arrange resumption of work on the premise of ensuring the health and safety of all colleagues, and cooperate with the local Vietnamese government's epidemic prevention regulations. At present, there are nearly 130,000 employees in Baocheng's Vietnam plant, and nearly 70% have been vaccinated. Vaccine coverage, full resumption of work in October is just around the corner.

The Bao Yuan Shoe Factory in Ho Chi Minh City, with a total of 56,000 employees, is Bao Cheng's largest overseas factory. The factory has suspended operations since mid-July. It has been more than 2 months since then, and finally ushered in the exciting news of the resumption of work. , And not only the Baoyuan Factory, but also the Baosong Factory and the Baocheng Factory have resumed operations one after another.

In addition, the two production plants in Xining, also under the approval of the local government, will resume work in stages from October 11, and the six plants in the four districts of Vietnam are expected to resume work this month.

Part of Baocheng’s production capacity in Vietnam has been affected by the suspension of more than two months. Baocheng has recently announced the production and operation status of Vietnam’s production and operation on behalf of its subsidiary Yue Yuen. Since the manufacturing business accounted for approximately 58% of Yue Yuen’s overall revenue in the first half of the year, Vietnam As one of the main production bases of Yue Yuen, it accounted for about 45% of the total shoe shipments in the first half of the year. Due to the suspension of the Vietnamese factory, the revenue of the manufacturing business fell in the third quarter.