According to a report by “Vietnam Economy” magazine on September 21, the fourth round of the epidemic in Vietnam has been evolving complexly since the outbreak at the end of April this year, especially in Ho Chi Minh City. The epidemic is still severe in the key southern economic zone, which has dealt a heavy blow to local clothing and shoe production. The clothing and shoe processing of international brands such as Nike, Adidas, Puma, Under Armour, and Deckers Outdoor has been severely affected in Vietnam, causing the risk of supply disruptions in their global supply chains.
Vietnam is one of Adidas’ largest suppliers in the world, and the brand’s production in Vietnam accounts for 28% of its global production. Nike has 222 processing plants in Vietnam, and the brand’s shoe production in Vietnam accounts for 51% of its global production. The output of brands such as Puma, Under Armor, and Deckers Outdoor in Vietnam accounts for 15% to 20% of their global output. Under the impact of the epidemic, Nike’s 88 processing plants in southern Vietnam have basically stopped production, and the supply chain is facing huge difficulties. Although the above-mentioned brands’ processing plants in central and northern Vietnam maintain production, due to social isolation and labor shortages, their production capacity is only 50-70% of what it was before the epidemic. </p
