The resurgence of COVID-19 infections has prompted the Vietnamese government and companies operating in the Southeast Asian country to tighten pandemic prevention measures.

The current outbreak is concentrated in central and southern cities in Vietnam. However, due to the difficulty of controlling the outbreaks and how closely linked the supply chain is, companies are on high alert and continue to closely monitor the situation.

According to Foxconn Technology Group (Hon Hai Precision Industry) chairman Young-way Liu, the current pandemic situation in Vietnam has not yet had a large impact on the company's operations, as its workers are still able to work to a certain extent.

The pandemic's impact on companies like Merry Electronics, whose factories are located in northern Vietnam, has been limited. However, as the pandemic becomes increasingly difficult to contain, companies are taking action to strengthen pandemic prevention measures.

Teco Electric & Machinery said its small motor factory in Binh Duong Province, just north of Ho Chi Minh City, is operating normally. They have already taken steps for pandemic prevention to reduce any risk of infection.

Lockdown restrictions implemented by the Vietnamese government have led to some workers being unable to work in factories. Teco admitted that lockdown measures will have some effect on production in its Vietnam factory. However, Teco emphasized that they have made up for this production gap by increasing the availability rate of its production lines in Taiwan. As a result, the impact on actual shipments is limited.

Supply chain sources revealed that due to different factors such as geopolitics and regional production in recent years, many companies have restarted their plans to set up factories in Vietnam. However, except for those who have already long been established in Vietnam, for many companies, factory construction is still underway or their production capacity is not high. For these companies, even if they are being directly impacted by COVID, they can still adapt with the allocation of production capacity in other regions.

By DIGITIMES