Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Vietnam factories short of workers after heavy-handed lockdowns - Cento Ventures

Stock MarketsDec 02, 2021 08:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Women work at Hung Viet garment export factory in Hung Yen province, Vietnam December 30, 2020. REUTERS/Kham

By Sayantani Ghosh and Miyoung Kim

(Reuters) - Factories in Vietnam are struggling for staff after many migrant workers returned home when a coronavirus lockdown that had kept them in Ho Chi Minh City for months last year was eased, a partner at venture capital firm Cento Ventures told Reuters.

A mass exodus from the city and its nearby industrial provinces has raised fears labour shortages will hamper the recovery from a record GDP slump in the third quarter.

"When the heavy hand of the government ... causes hundreds of thousands of workers to stay in factories to keep the exports churning, eventually when this heavy hand is withdrawn, workers go back to the villages and they do not return," Cento's Dmitry Levit said at the Reuters Next conference on Thursday.

Vietnam is one of the world's largest garment manufacturers, with more than 6,000 clothing and textile factories employing about three million people. They supply brands like Zara, Ralph Lauren (NYSE:RL), North Face, Lacoste and Nike (NYSE:NKE).

Tens of thousands of people left Ho Chi Minh City after restrictions were eased in early October, ignoring requests from authorities that they stay to work.

Vietnam said last month that it was aiming to fix the labour problem by end of this year or early in 2022.

Tough and prolonged lockdowns in Asian countries after the Delta variant swept through gutted economies and consumption and have made life especially difficult for companies whose businesses depend on putting feet on the ground.

"The pandemic has hit a hard reset on supply chains. Any businesses that were not viable have ... been destroyed," said Nipun Mehra, co-founder and CEO of Ula, an Indonesian startup that provides inventory and delivery services to the country's mom-and-pop kiosks.

Ula, valued at some $500 million, recently attracted funding from Amazon (NASDAQ:AMZN)'s Jeff Bezos.

Southeast Asian countries are the lifeblood of supply chains feeding large companies in the West, and lockdowns and port jams have snarled supplies in the weeks leading up to Christmas.

Malaysian chip suppliers, important players in the global semiconductor production line, have predicted it will take two or three years for the market to normalise, although the crisis is easing.

"Malaysia seems to be recalibrating itself quite nicely," Levit said.

Justin Hall, a partner at Golden Gate Ventures, said governments in the region were not stepping up as they should to ease the supply crunch, and that the private sector was not capable of sorting out such problems by itself.

There may be some improvements over the next 12-18 months, he said, but added: "It is an unhappy status quo for the time being."

Vietnam factories short of workers after heavy-handed lockdowns - Cento Ventures
 

Related Articles

Goldman Sachs adds another layer of stress
Goldman Sachs adds another layer of stress By Reuters - Jan 19, 2022

A look at the day ahead from Julien Ponthus. For all the turmoil across financial markets yesterday, the Nasdaq creeping dangerously near correction territory and closing below a...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Kaveh Sun
Kaveh Sun Dec 02, 2021 9:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lock downs create shortage. That is simple but the media n Joe excuse is ‘supply chain’. When there was shortage of meat, the media didnt use that excuse
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email