SINGAPORE (Reuters – Coronavirus strains are threatening factory activity in Southeast Asia, posing a threat to the recovery of the COVID-19 epidemic and disrupting the global supply chain for goods, such as clothing, automotives and electronics.

The Coronavirus bans forced companies to close down factories, suspend or cut operations and this was at a time where Asia’s manufacturing sector already struggles with rising raw material prices and signs of a slowering Chinese economy.

Vietnam, Malaysia, Thailand and Thailand are the three major regional manufacturing hubs. These countries produce some of the top consumer brands in the world.

VIETNAM

Vietnam’s major cities and industrial centres were hit hard by a coronavirus outbreak in April. They imposed strict lockdowns and forced electronics, footwear and apparel producers to cease or minimize their operations. In recent weeks, the restrictions were eased.

Initial symptoms of the outbreak were in northern areas where there are suppliers to Apple (NASDAQ;), Samsung (KS) and other tech companies.

The northern province Bac Giang had ordered that four industrial parks be temporarily closed down, three of which house Foxconn’s production plants.

Further south, the outbreak spread and Ho Chi Minh City, along with neighbouring provinces, imposed tight lockdown measures in July.

Taiwan’s Pou Chen Corp made footwear that month. Nike (NYSE:) & Adidas (OTC?). The South Korean company that makes shoes for Nike has shut down three of its factories in Ho Chi Minh City, and Changshin Vietnam.

Nike has lowered its 2022 fiscal sales estimates and warned about holiday delays. Apple’s iPhone 13 customers are experiencing longer than expected delivery times as a result of an outbreak in Vietnam. Vietnam is the location of components that make up the camera module.

According to the Vietnam Textile and Apparel Association, several fashion companies have moved orders from Vietnam and over 60% of footwear and apparel manufacturers in Vietnam have been penalized for slow delivery.

MALAYSIA

In recent months, several automakers as well as semiconductor companies stated that disruptions due to the pandemic in Malaysia had affected supply chains.

Malaysia placed a lockdown on June 1st after infections reached record-breaking levels. However, restrictions have been gradually lifted since July.

In June and July, many glove-makers were also affected by curbs in Malaysia which accounts for 67% of global rubber glove demand.

Malaysia houses major semiconductor manufacturers such as Europe’s STMicroelectronics (OTC) and Infineon, as well as other carmakers like Toyota Motor (NYSE.) Corp. Ford Motor (NYSE.) Co.

STMicroelectronics stated in July that it had temporarily shut down its Malaysian assembly plant for eleven days because of the coronavirus.

Infineon, a German chipmaker, stated in August that it will suffer a loss of up to two-digit millions euros due to shutdowns at the Malaysian plant.

In the same month Ford Motor Co said it would temporarily shutter the U.S. plant that builds its best-selling pickup truck due to a semiconductor-related parts shortage caused by the Malaysian outbreak.

THAILAND

Thailand placed stricter restrictions on July and August for high-risk areas, including Bangkok.

The government implemented “bubble-and-seal” measures to avoid factory closures elsewhere in Southeast Asia. This means that confirmed COVID-19 patients are sent to treatment, and other workers are isolated.

However, several businesses have been forced to close temporarily their operations in order to clean up COVID-19-related cases, such as Charoen Pokphand Foods and Thai Plastic Industrial.

Toyota stopped production of vehicles at three Thai plants in July because parts shortages were caused by the pandemic.

Thailand is Asia’s fourth-largest autos assembly and export hub for some of the world’s largest carmakers such as Toyota and Honda.

Due to tight border control, infection and quarantines, a shortage of migrants has affected food production and rubber production.

Siam Agro-Food Industry is a Thai processor of fruit exporter. It has been unable to fill the 400 remaining 550 positions because workers who have returned home are not allowed to travel to Thailand.