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Declining production in Vietnam is disrupting the global supply chain

Declining production in Vietnam is disrupting the global supply chain
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The decline in production in Vietnam’s textile, leather and footwear industries due to COVID-19 has affected the global supply chain, according to HSBC, which recently stated that the government’s plan to live with COVID-19 depends largely on its ability to acquire a wide range of vaccines. According to the association (VITAS), about 35 percent of the country’s textile-garment factories are closed.

The market share of its leather and footwear industry is 15 per cent after doubling in the last decade. Consumers in the United States and Europe will suffer from the disruption, especially as the festive season approaches, according to a report in a Vietnamese newspaper.

Adidas is facing difficulties as Vietnam accounts for nearly 30 per cent of its global supply. Its Taiwanese supplier Pouyuen, which has factories in Vietnam, is among the companies to suspend production.

Source: Online/KSU

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