On Thursday, two of Nike’s suppliers in Vietnam — Chang Shin Vietnam Co. Ltd. and Pou Chen Corp. — halted manufacturing because of a worsening Covid-19 outbreak. The crisis could create lasting supply chain disruptions for the sportswear giant according to an S&P Global report based on Panjiva data. The report stated 49 percent of US seaborne Nike imports came from Vietnam in the second quarter of 2021. Footwear accounts for most of Nike’s shipments from Vietnam: 82 percent of shipments from the country included footwear in the 12 months before June 30, said the report.
Further Reading: The Risky Business of Emerging Manufacturing Hubs
The pandemic is not the only cause of disruption to global supply chains. From Myanmar to Ethiopia, civil unrest and political conflict are impacting suppliers used by brands like H&M and Benetton.