Recently, Ho Chi Minh City, the largest city in Vietnam, announced the unblocking of the epidemic prevention measures that have been in place for nearly three months starting from October 1. According to the instructions of Hanoi’s “National Steering Committee for COVID-19 Prevention and Control”, Ho Chi Minh City will Parks, export processing zones, high-tech parks, and software parks will gradually begin their opening plans to resume work and production. Le Hoa Binh, deputy mayor of Ho Chi Minh City, announced that “all checkpoints on the streets will be cancelled, and passes will no longer be required after October 1.”
This is in sharp contrast to the current situation where only 11 of the 22 districts, counties and cities under the jurisdiction of Ho Chi Minh City have cleared their patients. According to statistics from the Ministry of Health of Vietnam, the Delta variant virus has swept across the country in the past three months, with approximately 770,000 new confirmed cases and 19,000 deaths from COVID-19. Most of this wave of deaths are concentrated in Ho Chi Minh City. From 17:00 on September 30 to 17:00 on October 1, Vietnam had 6,957 new confirmed cases of COVID-19, including 6,941 local confirmed cases, including 3,670 in Ho Chi Minh City, and 1,787 and 735 in the surrounding provinces of Binh Duong, Dong Nai, and Long An respectively. , 107 cases, accounting for more than 90% of the total number of locally confirmed cases in Vietnam.
Vietnam’s current tense economic situation may be the key reason for the country’s accelerated unblocking of the epidemic. .
Previously, Ho Chi Minh City implemented a strict “football ban” to prevent the epidemic, and many factories and companies fell into a “shutdown wave”. The impact on the clothing and textile factories of foreign companies in Vietnam was Electronic product manufacturers have also been affected. Apple, Toyota and Nike sporting goods companies have all been affected by the epidemic in Vietnam. It is reported that Intel’s plan to invest an additional US$475 million in a new factory in Vietnam in 2021 has also been temporarily suspended. The original factory can only maintain 30-50% of its previous production capacity.
On September 29, Vietnam’s National Bureau of Statistics released the latest statistical data. The country’s GDP fell by 6.17% in the third quarter of 2021 compared with the same period last year. This is also Vietnam’s largest decline since the reform and opening up in 1986.
After Vietnam gradually unblocks itself, the local textile and apparel industry may become active again. According to Citigroup Global’s industry survey, footwear OEM manufacturers such as Fengtai and Yue Yuen have actively sought permission from the local government to resume production.
According to Taiwanese media reports, Luo Renjie, spokesman for Taiwan-based garment manufacturer Ruhong, said on October 1 that it is estimated that the resumption rate of Vietnam factories in October will challenge 50%. Lin Hengyu, a spokesman for Juyang in the same industry, also said that the company’s Vietnam factory had resumed more than half of its work by September, with about a thousand people stationed in the factory. Quang Viet, a major down jacket manufacturer, pointed out that after Vietnam lifted the lockdown and fully resumed work, it was full of orders, and its mainland factories and factories in Jordan were booming in shipments. The fourth quarter, which was originally the traditional off-season, will become a peak season.
Vietnam’s anti-epidemic actions are a microcosm of Southeast Asian countries. Under huge economic pressure, in addition to Vietnam, countries such as the Philippines and Malaysia are gradually relaxing restrictions to revive their economies. </p
