The development of new coronavirus epidemics in Southeast Asia has hampered factory operations across industries, jeopardizing the region’s rehabilitation from the COVID-19 outbreak and affecting the worldwide supply of commodities such as clothing, autos, and electronic products, among others. Corporations have closed facilities and suspended or reduced operations as a result of Coronavirus restrictions, which come at a time when Asia’s industrial industry is already struggling with the rising cost of raw materials and indicators of a weakening Chinese economy.
How The Outbreak Of COVID-19 In Asian Countries
In the region’s key industrial centers, Vietnam, Malaysia, and Thailand represent three of the main players, producing items for some of the world’s top consumer brands.
Due to an outbreak of the coronavirus that began in April, the country’s major towns and industrial centers were compelled to implement stringent lockdowns.
Electronics, clothing, and footwear firms were forced to halt or restrict operations. In recent weeks, the limitations have been relaxed a bit. At first, the outbreak was concentrated in northern industrial regions, which are home to suppliers for Apple, Samsung, and other major technology companies.
In May, the northern province of BacGiang announced the temporary closure of four business estates, including three that contain production facilities for Taiwanese electronics giant Foxconn, in order to save resources. In July, Ho Chi Minh City and the surrounding industrial provinces implemented stringent lockdown measures in response to the outbreak’s progress farther south.
This month, Pou Chen Corp, a Taiwanese company that manufactures footwear for Nike and Adidas, halted operations at its factory in Ho Chi Minh City. In contrast, Changshin Vietnam, the South Korean company that manufactures shoes for Nike, closed three of its facilities in the country. Nike has lowered its fiscal 2022 sales forecasts and issued a warning about Christmas delivery delays. Because of the epidemic in Vietnam, where parts for the device’s better camera module are produced, purchasers of Apple’s latest smartphone 13 will have to wait longer than they anticipated for their devices to arrive.
The Vietnam Textile and Clothing Association reported that numerous international fashion companies had relocated their orders away from the area, and 60 percent of the country’s apparel and footwear manufacturers have been punished for making late deliveries to customers.
Over the past several months, several automakers and semiconductor firms have stated that pandemic-related disruptions in Malaysia are affecting their supply chains and operations there. Malaysia ordered a lockdown in June due to an increase in the number of illnesses but has been progressively easing restrictions on production since July. A number of glove manufacturers were forced to close their doors in June and July due to traffic congestion in Malaysia, which provides around 67 percent of the world’s rubber glove market.
Malaysia is the home to facilities that supply semiconductor manufacturers like STMicroelectronics, Infineon of Europe, and major automobile manufacturers such as Toyota Motor Corp and Ford Motor Co. of the United States. STMicroelectronics announced in July that it has temporarily stopped its assembly factory in Malaysia for 11 days due to the country’s coronavirus outbreak.