C-19 outbreak in Vietnam’s industrial provinces threatens tech supply chain | Daily News

C-19 outbreak in Vietnam’s industrial provinces threatens tech supply chain

Factory workers in Vietnam
Factory workers in Vietnam

A rapidly spreading COVID-19 outbreak has left factories operating below capacity in Vietnam’s industrial northern provinces, where suppliers for Apple (AAPL.O), Samsung (005930.KS) and other global tech firms are located, industry sources said.

After successfully containing the new corona virus for most of last year, Vietnam is now battling an outbreak that is spreading more quickly. More than 3,000 people have been infected in 30 of its 63 cities and provinces since late April. The capital Hanoi, and the southern business hub of Ho Chi Minh City, have shut restaurants and banned public gatherings. Four business sources said their operations had been affected as some areas have entered lockdown, raising concerns about supply chain disruption.

A source at one Apple supplier said the company had split its workforce over two shifts, describing it as a “temporary solution, for maybe two weeks.”

“Otherwise, the supply chain will be more or less disrupted,” said the source, who requested anonymity because they were not authorised to speak to the media. Vietnam’s health ministry said on Friday it had begun vaccinating workers in Bac Ninh and Bac Giang, the two provinces most affected by the new outbreak.

At least 1.04 million people in Vietnam have had one dose of COVID-19 vaccine, but just 28,529 have been fully vaccinated, according to official data. Bac Ninh, where Samsung Electronics has significant operations, imposed a curfew and other travel restrictions on Tuesday, state media said. Vietnam accounts for half of Samsung’s global phone and tablet production, according to the government.Last week, Vietnam’s government urged Bac Ninh and Bac Giang provinces to boost efforts to prevent a COVID-19 outbreak disrupting industrial production. LG, Foxconn and Luxshare have operations or supply chain companies in the area.