Bags / Shoes & Accessories

On the 18th, Vietnam added 5887 local cases.

On the 19th, Vietnam added 4195 local cases.

On the morning of the 20th, Vietnam added 2,155 confirmed cases. The total number of confirmed cases of COVID-19 nationwide is 60,180.

Due to the expansion of the new crown epidemic in Vietnam, Taiwanese Vietnamese shoe factories have recently been required to temporarily suspend work. There is a growing trend. Following Baocheng and Yuqi-KY, Fengtai announced on the 19th that its four factories will temporarily suspend work until the 23rd.

Similarly, Zhiqiang-KY19 announced that its four shoe factories in Zhixiong, Dahua, Dahe, and Zhizhong will be suspended until August 2nd, and Zhining factory will be suspended until July 30th.

Since the main customers of Winterthur and Zhiqiang are Nike, they may impact the order shipment of Nike's supply chain in the short term. The status of subsequent order shipments depends on the situation of epidemic control.

Shoe giants have shut down

Nike Vietnam-made sneakers may be out of stock

Nike, the global leader in sports goods, may be implicated, facing the crisis of out of stock of Vietnamese-made sports shoes.

CNBC reported that Panjiva, a supply chain research organization under S&P Global Market Intelligence, found that 49% of Nike's US seaborne imports came from Vietnam in the second quarter of 2021 (April-June).

However, Nike's two main suppliers in Vietnam, including South Korean shoe manufacturer Changshin Vietnam and Taiwanese-funded company Baocheng, have recently stopped production due to the severe COVID-19 epidemic in the region, which may cause the supply of Nike Vietnam-made sports shoes to raise alarms.

Nike's financial report data shows that for the 2020 fiscal year (as of May 31, 2020), the proportion of supply from Vietnam's OEMs accounted for about 50% of the total number of Nike brand shoes. According to Panjiva’s report, Nike’s imports from Vietnam are mainly footwear, which accounted for 82% of total imports for the 12 months ended June 30 this year.

The report pointed out that the US retail industry is preparing for the start of the school shopping season, and the COVID-19 epidemic in Vietnam is spreading, which is a big blow to businesses such as Nike.

In addition, in recent months, problems including shortage of containers and large traffic congestion in global ports have also exacerbated the supply chain's difficulties.