According to HSBC, the global supply chain has been impacted by the fall in production in Vietnam’s textile, leather, and footwear industries as a result of Covid-19.
According to the Vietnam Textile and Apparel Association, about 35% of the country’s textile and garment manufacturers are closed.
Vietnam is the world’s third largest producer of textiles and garments, trailing only China and Bangladesh.
Vietnam is a key player in the global supply chain and accounts for nearly 30 percent of Nike’s global production. The Delta variant of Covid that has hit the country has raised questions about the viability of the Vietnamese supply chain so much so that Apple and Google have delayed their shift to Vietnam. Consumers in the US and Europe will suffer from the disruption as the festive season approaches.