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collapse! 90,000 factories here are delisted, and the global supply chain has fallen again!

2021-11-22 16:50:00
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Recently, the epidemic situation in Vietnam is still severe. The number of cases in many places has continued to rise, and the mortality rate has risen rapidly. The epidemic has dealt a heavy blow to the Vietnamese economy, and local companies are facing severe operating difficulties due to the epidemic.


According to statistics, 90,300 companies across Vietnam withdrew from the market in the first three quarters. At the same time, the impact of the epidemic on the Vietnamese manufacturing industry is gradually spreading to many links in the industrial chain, and the global supply chain of clothing, footwear, electronic technology and other industries is also being disrupted.


According to information from the Vietnam News Agency on the evening of November 15 local time, the Ministry of Health of Vietnam reported that in the past 24 hours, there were 8616 newly confirmed cases of new coronary pneumonia in Vietnam, including 13 imported cases and 8603 local confirmed cases (compared to the previous An increase of 440 cases per day), involving 57 provinces and cities across the country; 3950 confirmed cases were found in community screening. There were 101 new deaths, again rebounding to triple digits.


The epidemic has dealt a heavy blow to Vietnam's economy


According to data released by the General Statistics Office of Vietnam, due to the severe impact of the new crown pneumonia epidemic, Vietnam's gross domestic product (GDP) in the first nine months of 2021 is expected to grow by only 1.42% over the same period last year. Among them, the economic data in the second quarter has been reduced from 6.61% growth to 6.57%; and the third quarter gross domestic product (GDP) fell by 6.17% year-on-year, the first single-quarter decline since 2000.


In September this year, the General Administration of Statistics of Vietnam conducted a survey on the operation of national enterprises and showed that 90,300 enterprises delisted in the country in the first three quarters, an increase of 15.3% over the same period of the previous year. The survey shows that 94.3% of companies are facing difficulties due to the epidemic.


Among them, 98.9% of the enterprises in the 19 southern provinces and cities are facing serious difficulties due to the epidemic, especially those in the southeast, which accounted for 99.1%. More than 6,600 industrial companies across the country participated in the above survey, and 95% of them said they were affected by the epidemic. Among them, 80% of enterprises increased their investment due to the prevention and control of the epidemic; 54.2% of enterprises increased their production costs due to the increase in the price of raw materials; 49.5% of enterprises increased their expenditures due to the increase in logistics prices; 40.8% of enterprises had a shortage of production raw materials; 33.4% of enterprises There is a shortage of labor in enterprises.


Vietnamese companies face labor shortage under the new normal


According to the results of a nationwide survey conducted by the General Statistics Office of Vietnam on the impact of the new crown pneumonia epidemic, 17.8% of the 22,764 companies surveyed were short of labor. The proportion of enterprises lacking jobs in the southeast region is as high as 30.6%. Among them, the provinces with severe labor shortage are Binh Duong (36.9%), Binh Phuoc (34.4%) and Ho Chi Minh City (31.8%). The industries with the most serious labor shortages are electronics, computer and optical products (55.6%), leather and related products (51.7%), clothing manufacturing (49.2%), electrical equipment manufacturing (44.5%) and textiles (39.5%).


Although Ho Chi Minh City and other provinces and cities have recently been reopened after being closed for several months, only those with a "green card" (those who have received two doses of the vaccine) can work. In addition, after the restrictions were lifted, a large number of workers took the opportunity to flee the factory and return to their hometowns. The Vietnamese government estimates that the number of returnees may exceed 2 million, which will further create a greater labor gap in the country's manufacturing industry.


Global supply chain is disrupted by Vietnam epidemic


The impact of the new crown epidemic on Vietnam's manufacturing industry is gradually spreading to many links in the industrial chain. For example, Baocheng Group is the world's largest manufacturer of sports shoes. October 6 Japan is the day when its factory in Ho Chi Minh City officially resumed work. However, according to the statistics on that day, only 20%-30% of the workers returned to their original jobs. More than 40,000 employees failed to return to work on time.


According to estimates by the Vietnam Textile and Apparel Association, the industry originally employed 3 million people, but now 1 million of them have left their jobs, are temporarily unable to work, or are on unpaid leave. The association stated that the industry is facing difficulties such as labor shortages and supply chain disruptions, and foreign trade orders are too late to be delivered and may not be able to meet the original annual export target.


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