Original title: millions of Vietnamese workers fled the factory, what happened?

Author: Shuipi miscellaneous talk studio

No, no.

2 million workers leave their posts and return to their hometown

Affected by the COVID-19 epidemic, Vietnam has carried out epidemic prevention and control measures for nearly three months, as the southern industrial zone where a large number of workers are located is the center of the outbreak, which has had a huge impact on Vietnam's economy.

No one expected that with the improvement of the epidemic, it was not easy for Vietnam's Ho Chi Minh City and surrounding provinces to understand the closure, but suddenly there was a wave of workers returning home. Because of the fear of COVID-19 's epidemic, workers in Vietnamese factories not only did not stay after they were released, but accelerated to flee the industrial zone and return to the countryside.

It is said that by sending short messages to workers, the Vietnamese government tried to persuade them to return to work and even sent chartered cars to pick them up. Factories also offered high wages and benefits to keep workers, but to no avail.

The Vietnamese government estimates that the scale of the flight could exceed 2 million.

As a result, many factories face the dilemma of being forced to shut down, which not only becomes an extravagant hope for economic restart, but also further aggravates the tense crisis in Vietnamese factories and even the global supply chain. This is in sharp contrast to the overtime work of both enterprises and workers after China restarts the supply chain.

What will be the impact of the wave of Vietnamese workers returning home?

The consequences are very serious. Because Vietnam plays an important role in the global consumer economy, covering a wide range of industries, including clothing, footwear, furniture, electronics and so on.

Vietnam is now the second largest clothing and footwear supplier in the United States after China, according to the American clothing and Footwear Association. And there are many big companies like Nike Inc that rely on Vietnam to produce shoes and clothing.

In 2021, more than 50 per cent of Nike Inc's footwear and 30 per cent of his clothing were produced by Vietnamese factories. Camilo Camilo Lyon, an analyst at BTIG, a Wall Street research firm, estimates that Nike Inc alone has lost 180 million pairs of shoes.

As early as September 10, representatives of the American Chamber of Commerce and the European Union Chamber of Commerce in Vietnam reminded Vietnamese Prime Minister Fan Mingzheng by telephone that 18% of the EU enterprises in Vietnam had transferred their orders to other countries and 16% were under consideration.

In addition, factory shutdowns in Vietnam could also affect technology companies such as Apple Inc. It is reported that at present, the waiting time of iPhone 13 Pro 512 GB Yuanfeng Blue in China is as long as five weeks, as is the same model in Japan and four weeks in the United States.

The disruption is mainly related to the limited supply of camera modules for four iPhone 13 models because a large number of their parts are assembled in Vietnam.

The Vietnamese government had hoped to unseal to resume production, but the sudden wave of workers returning home spread the crisis of order loss and put more and more pressure on factories.

Of course, we can also understand that workers who return home are, after all, floating clouds in front of their lives. If you want to resume work and production under the epidemic, then the first step of epidemic prevention must be in place, and safety must be guaranteed, so that everyone will not have to worry about it.