Summary: Recently, the epidemic in in Vietnam was tense, with daily increase of more than 10,000 cases for four consecutive days. The cumulative number of confirmed cases is 369,267. Vietnam announced a "lockdown" and Ho Chi Minh City entered a "strict control period."
The fourth wave of the epidemic is coming, Vietnam is in dire straits, and Chinese, Korean and Japanese companies in the south are seriously affected, among which the most affected are electronics, textiles and footwear companies.
There are reports that the domestic textile giant Balong Oriental has begun to plan a loss reduction plan due to the decline in Vietnam's production capacity. Nike has faced a business dilemma of "zero output". Italian computer maker Lijie said he had barely made some revenue in the first half of the year, but since July, its revenue has dropped by half, and in August it was even more overwhelmed and had to lay off a large number of employees.
In 2019, Google moved the production line to Vietnam to avoid the risk of "over-dependence on China's industrial chain". In this situation, Google has to move its factories from Vietnam to Shenzhen, which also means that Google's industrial chain transfer failed, and the same is true for Apple .
In the first half of the year, Vietnam had actually closed down due to the epidemic due to the epidemic and failed to resist it. China took on a large number of orders from it, which directly led to our textile trade export volume exceeding US$140 billion in the first half of the year, an increase of 12% year-on-year.
According to historical data, from 2013 to 2019, Vietnam's footwear production ranked third in the world after China and India, and its clothing production ranked fifth in the world. It was even once touted as a country that is likely to replace China's "world factory" status.
Nowadays, workers are lost, orders are lost, and capital is lost, which also shows that Vietnam has no reserves to fight against China, and its status as the "world factory" is still in China.
When it comes to Vietnam, we have to mention India. Foreign companies not only suffered a loss in Vietnam, but also suffered a fall in India. At that time, India boasted and attracted investment everywhere during the epidemic, promising to invest in India to get greater benefits and discounts than building factories in China, and making a big splash that as long as China can do it, India can do it too! Two waves of the epidemic completely defeated India's economy, foreign companies withdrew their factories and returned to China, and orders also returned to China. Foxconn is a vivid example. He moved to India happily and returned to China in a dilemma.
How should Vietnam break the dilemma now? The most urgent task is to control the epidemic, and the future will be long!
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