default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

One-Third of Vietnam’s Textile and Garment Factories Closed

Workers in a Vietnamese garment factory. Shutterstock
Workers in a Vietnamese garment factory. Shutterstock

A record surge of Covid-19 infections has forced around a third of Vietnam’s textile and garment factories to halt operations. According to the Vietnam Textile and Apparel Association (VITAS), around 30 to 35 percent of textile and garment factories in Vietnam are now closed.

Footwear, too, has been hit hard by Vietnam factory closures. Taiwan’s Pou Chen, which makes shoes for Adidas and Nike, and South Korea’s Changshin, which also supplies Nike — suspended operations last month. Pou Chen stopped production at a Ho Chi Minh City factory, its largest in the country, on July 14.

Vietnam’s daily new cases have been trending between 7,000 and 8,000 and nearly all of the country’s more than 200,000 infections have been recorded since the beginning of July, 2021.

Vietnam was one of few Asian economies that grew last year despite the pandemic and according to the World Trade Organisation’s (WTO) latest World Trade Statistical Review, the country overtook Bangladesh to become the world’s second largest garment exporter in 2020.

The Vietnam Textile and Apparel Association said the vaccination rate among industry workers is “still very low”, prompting the American Apparel and Footwear Association (AAFA) to lobby US President Joe Biden to provide vaccines to Vietnam and other “key partner countries”.

Learn more:

How Fashion Can Tackle Its Supply Chain Crisis

Between factory lockdowns and a shipping crunch, the pandemic is making it difficult for brands to take advantage of surging demand.

In This Article

© 2021 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The State of Fashion: Technology
© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions and Privacy policy.
The State of Fashion: Technology