Stock Groups

Workers flee Vietnam’s largest city as long lockdown eases By Reuters

[ad_1]

2/2
© Reuters. Most of the people are migrant workers and want to go back to their homes. They wait for their turn at a border check point to depart Ho Chi Minh City (Vietnam) October 1, 2021. Picture taken October 1, 2021. REUTERS/Stringer

2/2

HANOI (Reuters) – Tens of thousands of people, mostly migrant workers, left Ho Chi Minh City over the weekend as the largest metropolis in Vietnam eased a months-long COVID-19 lockdown https://www.reuters.com/world/asia-pacific/vietnams-biggest-city-start-lifting-covid-19-curbs-revive-business-2021-09-30, triggering fears of labour shortages and more disruption to manufacturing.

The mass exodus comes as the city and its nearby industrial provinces struggle to ensure sufficient workers to help revive the country’s economy, which posted a record GDP slump https://www.reuters.com/world/asia-pacific/vietnam-posts-record-gdp-slump-q3-due-covid-19-curbs-2021-09-29 in the third quarter due to COVID-19 curbs.

Tran Thi Them (32), said that she had left her home to search for better work in the city and was now tired as she waited for her compulsory COVID-19 exam before departing.

She said that she was going to home with her husband to raise and farm cattle.

In July, the city started imposing curbs on garment factories. She was fired and she has been living in her 10-meter-squared rented room.

According to state media, nearly 90,000. people fled Ho Chi Minh City on Friday due to fears that they might be stuck again in the event of another round of infection. From late Thursday, the city relaxed curbs.

Le Hoa Binh, vice-chairman of the People’s Committee in Hanoi, said, “Please do not leave and continue to work.”

“The city faces serious labor shortages.”

“DIFFICULT to RECRUIT”

This would increase the difficulties of those businesses involved in labour-intensive industries that have already been affected by the lockdown.

Sub-contractor for Coteccons Construction, Ho Chi Minh City said that they were facing an enormous labour shortage. He spoke on condition that he not be identified because media was prohibited from speaking to him.

We have 60% of the labor force required for our projects. It’s hard to find more people now.

Suppliers for Nike (NYSE:) and Adidas OTC: suspended Vietnam operations earlier this year. Nike has cut its fiscal 2022 sales expectations https://www.reuters.com/business/retail-consumer/nike-misses-estimates-quarterly-revenue-shares-fall-2021-09-23 and warned of holiday delays.

Buyers of Apple (NASDAQ:)’s new iPhone 13 face longer-than-expected delivery https://www.reuters.com/business/delivery-times-iphone-13-stretch-covid-19-hits-vietnam-suppliers-nikkei-2021-09-29 times because of the outbreak in Vietnam, where components for the device’s new camera module are assembled.

Fashion brands are also increasingly turning away https://www.reuters.com/business/retail-consumer/how-global-supply-chains-are-falling-out-fashion-2021-09-30 from low-cost manufacturing hubs in Asia.

Vietnam is home to one of the highest vaccination rates in Southeast Asia. Less than 11% have received two doses.

The agency has recorded more than 880,000 cases and 19,700 deaths from COVID-19, with Ho Chi Minh City being responsible for almost half and 77% respectively.

According to Them, they are headed home “as that is safer,”



[ad_2]