Vietnam Garment Industry Exports This Year May Not Be Able To Recover Quickly!

Vietnam's Ho Chi Minh City has opened its factories and enterprises since October to resume operation in line with the requirements of epidemic prevention. However, after the closure, the city and its surrounding provinces are afraid to face the problem of job shortage, further attacking the already fragile global supply chain.

40% of the garment and shoe factory workers return home, and I don't know how many will come back

According to the official website of the Vietnamese government, tens of thousands of workers have left the commercial center of Vietnam, Ho Chi Minh City, as well as the neighboring provinces of Pingyang, tongnai and Long'an, according to the government's official website.

The outbreak of the epidemic in Vietnam some time ago, workers were restricted to stay in factory dormitories. When Ho Chi Minh City relaxed epidemic prevention and reopened the factory operation on October 1, there was a sudden wave of workers returning home. At the same time as the outflow of workers, industry leaders have also warned of an impending labor shortage.

According to the Ministry of public security of Vietnam, as many as 2.1 million workers in the industrial zone want to return home. At present, officials have arranged hundreds of buses to send them back to rural areas. Those who have not been vaccinated will be sent to isolation centers after returning home.

According to the American Apparel & Footwear Association, which represents more than 1000 brands, Vietnam has long been the second largest clothing and footwear supplier in the United States.

Vu Duc Giang, chairman of the Vietnam textile and Apparel Association (vitas), said the labor shortage rate in Vietnam's garment industry could reach as high as 37% for the rest of 2021.

Phan thi Thanh yuan, vice president of Vietnam leather, footwear and handbag Association, said that about 40% of the footwear OEM workers have returned home, and it is not clear how many of them will return.

70% of 130000 employees have been vaccinated, and Baocheng Vietnam shoe factory is expected to return to work in October

After a long period of anti epidemic work in Vietnam shoe factory of Baocheng group, Ho Chi Minh City of Vietnam announced that it would be unsealed from October 1. Baoyuan shoe factory, a subsidiary of Yuyuan industry, has obtained the approval of the local government and will resume work in stages according to the requirements from 6 June.

Baocheng stressed that it will actively arrange the resumption of work on the premise of the health and safety guarantee of all colleagues, and cooperate with the local government's epidemic prevention regulations. At present, nearly 70% of the nearly 130000 employees in Baocheng Vietnam plant have been vaccinated. They not only strive for the coverage rate of vaccines, but also can return to work in October.

Baoyuan shoe factory, located in Ho Chi Minh City, has a total staff of 56000 people. It is the largest overseas plant of Baocheng. The factory has been suspended from operation since mid July. So far, it has been more than two months. Finally, it has received the encouraging news that Baoyuan factory, Baosong factory and Baocheng factory have resumed work one after another.

In addition, with the approval of the local government, the two production plants in Xining will be put into operation step by step from October 11, and it is expected that the six factories in four districts in Vietnam will resume work this month.

Part of Baocheng's production capacity in Vietnam was greatly affected by the shutdown for more than two months. Baocheng recently announced the production and operation status of Vietnam on behalf of its subsidiary Yuyuan. As the manufacturing business accounted for about 58% of the total revenue of Yuyuan in the first half of the year, Vietnam, as one of the main production bases of Yuyuan, accounted for about 45% of the total even number of shoes shipped in the first half of the year, This led to a decline in manufacturing revenue in the third quarter.