Vietnam says its Nike manufacturers back to full operations -Breaking
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© Reuters. FILE PHOTO – The Nike Swoosh logo can be seen at the New York store located on 5th Avenue in New York City, New York (USA), March 19, 2019. REUTERS/Carlo Allegri/File PhotoHANOI (Reuters). Approximately 200 sportswear factories have been contracted by HANOI. Nike Inc (NYSE:), across Vietnam, have resumed operation after months of COVID-19 suspend, the government announced Wednesday. This is as it attempts to get Vietnam’s key manufacturing sector back on its feet.
After authorities imposed movement restrictions to stop major epidemics spreading, nearly 80% and half the Nike footwear producers in Vietnam stopped production by mid-July.
Nearly half the footwear made by America’s sports giant is from Vietnam.
Vietnam was home to one of the most impressive coronavirus control records in the world. It had very little disruption to its vital manufacturing sectors until mid-2016.
After May’s outbreak in Ho Chi Minh City, the country’s southern economic center, it was able to spread its disease to other parts of Vietnam.
Foreign business organizations warned that they might have to shift their operations overseas due to the government shutdown.
These restrictions were removed a month ago but now the country faces labour shortages. Vietnam has at least 3 million workers in the textile and footwear industries.
In order to encourage manufacturing activity, the country prioritized vaccinating industrial park workers.
The government stated that Nike would continue to increase investment and production in Vietnam. This statement came after a meeting between Pham Minh Chinh, Prime Minister, and Noel Kinder (Nike’s Chief Sustainability Officer), at the COP 26 summit.
Vietnam recorded more than 930,000 cases of infection and over 22,000 deaths. Only a third have been vaccinated.
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