Nike supply chain in southern Vietnam back to normal
Nike’s supply chain in southern Vietnam has entirely recovered from pandemic-indured disruptions, while its suppliers in the northern region are attempting to restore their production, the giant’s representative said on Tuesday.
The information was delivered at a meeting between the Ministry of Industry and Trade (MoIT) and leading U.S companies operating in Vietnam.
Previously, Nike and many businesses were remarkably affected by factory closures due to a new wave of Covid-19 outbreaks across Vietnam’s southern cities and provinces.
The fallout forced Nike to cut its full-year sales outlook in late September 2021 despite surging consumer demand.
Analysts of global financial services firm BITG estimated that the company lost a total of 160 million pairs of shoes during the 10 weeks of suspended production last year.
In 2020, factories in Vietnam supplied 350 million pairs to Nike, accounting for 51% of its shoe production and 30% of its clothing output.
BTIG experts expected that supply chain rupture could last until at least spring 2022, putting apparel and footwear companies at risk because “Vietnam has served as a strong manufacturing alternative to China in recent years”.
Nike stock fell 1.3% in the middle of September 2021, after the giant was downgraded by BTIG due to supply chain problems.
Despite the context, the brand did not relocate their factories out of Vietnam as there are no alternatives that could meet its requirements in terms of time, quality and evaluation system like its Vietnamese partners, Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (Vitas) said.
Not only Nike was in trouble. A number of other retailers were also rattled by the supply chain delays as they waited for productions in Vietnam to resume.
Among the brands that were under pressure were Adidas, Under Armour, Ugg maker Deckers Outdoor, Columbia Sportswear, Coach parent Tapestry and Capri Holdings. Vietnam is the second largest supplier of apparel and footwear to the U.S, after China, according to Steve Lamar, president and CEO of the American and Footwear Association (AAFA).
However, as Vietnam has moved from the “zero-Covid strategy” to safe, flexible adaptation to the disease and effective control of Covid-19, enterprises started to reopen and recruit their workers, speeding up production to meet export orders.
At the meeting, Deputy Minister of Industry and Trade, Do Thang Hai, said the ministry will help ensure the supply of raw materials, assisting enterprises in restoring their production and maintaining orders, especially important manufactures.
On November 2, at a meeting on the sidelines of COP26, Nike’s Director of Sustainable Development, Nobel Kinder, on the behalf of the brand thanked Pham Minh Chinh, Vietnam’s Prime Minister, and concerned state agencies for their timely support in the restoration of socio-economic development.
He said Nike is committed to expanding its investment and production in Vietnam.
At the meeting, some leading U.S companies also said they plan to enlarge their investment in the country this year.
A representative of Ford Vietnam Co., Ltd. said the firm plans to increase its production capacity and recruit more workers this year. Currently, the company is applying for a license to deploy a completely new business form in the automotive field: an e-commerce site to maximize its support for customer experience to purchase online.
Affirming that Vietnam is an important market, a representative of ExxonMobil in the Asia-Pacific region said that the company is currently implementing a number of gas to power projects in Vietnam. ExxonMobil is also developing and applying advanced technologies and solutions to support Vietnam’s transition to clean energy, contributing to the implementation of COP26's commitments, the rep said.
- Read More
Centralized inspection locations within export processing zones, industrial parks can save resources: customs official
With Ho Chi Minh City hosting over 1,600 processing enterprises within its export processing zones, it is impractical for customs officers to inspect all goods on-site, says a senior customs official.
Economy - Thu, November 28, 2024 | 5:45 pm GMT+7
Vietnam decree on sports betting impractical: experts
Vietnam’s decree on horse racing, greyhound racing and international football betting remains irrelevant seven years after it was issued, experts told a forum in Hanoi on Thursday.
Economy - Thu, November 28, 2024 | 5:14 pm GMT+7
Vietnam corporate income tax among the lowest in ASEAN: Deputy PM
Vietnam's corporate income tax (CIT) was among the lowest in Southeast Asia, Deputy Prime Minister Ho Duc Phoc asserted Thursday amidst calls for further reductions.
Economy - Thu, November 28, 2024 | 5:05 pm GMT+7
Russia willing to build nuclear power plant in Vietnam: diplomat
Russia stands ready to construct a nuclear power plant in Vietnam if requested by the Vietnamese government after an eight-year pause, says a Russian diplomat.
Energy - Thu, November 28, 2024 | 4:49 pm GMT+7
Radisson Blu Resort Cam Ranh unveils Rainforest Waterpark
Embrace the vibrant festive season at one of Vietnam’s most captivating resort destinations, as Radisson Blu Resort Cam Ranh introduces an all-new experience with the grand opening of its Rainforest Waterpark.
Travel - Thu, November 28, 2024 | 4:42 pm GMT+7
How Masan employs dealmaking to build its consumer-retail platform
Masan Group was honored as “Business with outstanding M&A strategy 2023-2024” at the M&A Forum in Ho Chi Minh City on Wednesday.
Companies - Thu, November 28, 2024 | 3:52 pm GMT+7
Vietnam conglomerate REE recalls septuagenarian ‘female general’ as CEO amid profit declines
REE Corporation, one of Vietnam's largest multi-sector companies, saw its profits declining by the time it effected a major leadership change, with Nguyen Thi Mai Thanh stepping down as chairperson and taking over the CEO post.
Companies - Thu, November 28, 2024 | 3:41 pm GMT+7
Danish energy firms keen on Vietnam investment with proper regulatory environment: diplomat
Realizing Danish renewable energy firms’ interest in Vietnam, "comes down to the legal framework and regulatory environment" facilitating their entry, a diplomat said Thursday.
Energy - Thu, November 28, 2024 | 3:13 pm GMT+7
Resume nuclear power project, Vietnam gov’t proposes after 8-year pause
Vietnam should resume the nuclear power project in Ninh Thuan province after an eight-year hiatus to meet growing energy needs, the government has proposed to the National Assembly, the nation’s top legislative body.
Energy - Thu, November 28, 2024 | 2:09 pm GMT+7
Oct construction steel sales in Vietnam hits three-year high on strong domestic demand
Construction steel sales in Vietnam reached over 1.25 million tons in October, marking a nearly 44% year-on-year increase and the highest level since March 2022.
Economy - Thu, November 28, 2024 | 12:50 pm GMT+7
HCMC to open cross-border truck road linking to 'China's big data capital' Guiyang city
Ho Chi Minh City of Vietnam and Guiyang city of China’s Guizhou province plan to boost economic cooperation, including opening a truck road linking Vietnam to the Guiyang free trade zone and building a bonded warehouse based in Hanoi.
Economy - Thu, November 28, 2024 | 12:37 pm GMT+7
Three factors to drive Vietnam's bustling M&A market in 2025: KPMG exec
Vietnam's mergers and acquisitions (M&A) market is expected to thrive in 2025, fueled by GDP growth, e-commerce expansion, and infrastructure development, says Nguyen Cong Ai, a partner with KPMG Vietnam.
Economy - Thu, November 28, 2024 | 11:37 am GMT+7
Philippines’ ACEN spends $71 mln acquiring 49% at Vietnam’s BIM Energy
ACEN Corporation, a leading renewable energy business based in the Philippines, has spent $70.5 million on acquiring a 49% stake at Vietnam-based BIM Energy Holding Corporation.
Energy - Thu, November 28, 2024 | 11:00 am GMT+7
Vietnam government orders lending rate cuts
The Vietnamese Government has required strong measures by the State Bank of Vietnam to bring down loan interest rates and assigned a credit growth target of 15% for the whole year.
Banking - Thu, November 28, 2024 | 9:08 am GMT+7
VAFIE to organize workshop on amendments to horse racing, football betting rules today afternoon
The Vietnam’s Association of Foreign Invested Enterprises (VAFIE) and The Investor will today organize a workshop on suggestions to amend the government’s Decree 06 on horse racing, greyhound racing and international football betting services.
Economy - Thu, November 28, 2024 | 8:00 am GMT+7
Thailand’s October exports highest in 19 months
Thailand's exports in October stood at $27.22 billion, marking a 14.6% growth and achieving the highest export value in 19 months, according to the country’s Trade Policy and Strategy Office (TPSO).
Southeast Asia - Wed, November 27, 2024 | 10:01 pm GMT+7