Bags / Shoes & Accessories

On October 5, according to the Viet News Agency:

Recently, there have been news on many social networking sites that Nike Group will transfer production lines from Vietnam to China and Indonesia. Adidas and Puma will also have similar measures in November 2021.

However, the vice chairman and secretary general of the Vietnam Leather Footwear and Bags Association (LEFASO), Ms. Pan Thi Chung, confirmed that the above news is completely untrue. Pan's youth said that 88 of Nike's 112 factories in Vietnam are located in the southeast, specializing in the production of Nike's very popular sports shoes.

Pan's youth emphasized, "The complicated situation of the domestic new crown pneumonia epidemic has affected the production activities of enterprises engaged in the textile, apparel and footwear industries. Nike has moved orders to other countries, but it has not moved the production line out of Vietnam. That is untrue news."

Fan Junying, deputy director of the Industrial Bureau of the Ministry of Industry and Trade of Vietnam, also confirmed that there was no incident of Nike moving the production line out of Vietnam.

Fan Junying said, “In the past period of time, some of Nike’s orders have expired. In order to deliver on time, they have transferred the orders to factories in other countries. Recently, at a meeting with the prime minister, Nike’s CEO also affirmed him. Will not leave Vietnam, and did not move production from Vietnam to other countries."

According to a report from the Ministry of Industry and Trade, in the first nine months of 2021, Vietnam's footwear exports are expected to reach USD 13.33 billion, an increase of 9.8% year-on-year. This is an industry that has a high growth rate and has contributed to the growth of the export value of the leather, footwear, luggage industry.

However, according to the "Wall Street Insights" report recently:

The four major chambers of commerce representing investors from Europe, America and South Korea jointly sent a letter to the Prime Minister of Vietnam, calling for a clear timetable for companies to resume work, stating that at least one-fifth of the manufacturing companies have transferred part of their production to other countries.

The strict blockade and epidemic prevention measures implemented by the Vietnamese government are forcing manufacturing companies to switch to the arms of other countries. Overseas investors represented by the four major chambers of commerce have issued warnings to this Southeast Asian world factory.

The U.S., EU, and South Korean Chambers of Commerce in Vietnam and the U.S.-ASEAN Business Council recently jointly sent a letter to Vietnamese Prime Minister Pham Myung Ching, "Companies now need a clear road map and specific date for resumption of work. The survey conducted by our associations shows that we are at least 20% Of manufacturing members have already transferred part of their production work to other countries and are still discussing transferring more."