KTAF NEWS

Affected by the new crown epidemic, the American Nike company’s sports shoe production capacity in Vietnam may be interrupted. US CNBC television reported on the 19th that not long ago, Nike’s two main suppliers in Vietnam had interrupted production due to the severe epidemic. Nike previously disclosed that in the 2020 fiscal year, Nike shoes produced by the company’s foundry in Vietnam accounted for about half of Nike’s total global production capacity.

Another data shows that in the second quarter of 2021, of all Nike brand products imported by sea in the United States, products from Vietnam accounted for as much as 49%. In the past year ended June 30 this year, Nike’s imports of footwear products from Vietnam accounted for as much as 82%. The analysis believes that the North American market is currently at a critical time for sports brands to prepare for the peak sales season for students to return to school. The Vietnamese new crown epidemic has severely impacted Nike’s supply chain.

In addition to the impact of the new crown epidemic on overseas foundries, the logistics pressure caused by insufficient containers and tight port storage space is also not small.

It is not only Nike that is under pressure in American sportswear. Executives of Brooks Running, a sports equipment company, disclosed that the company’s logistics cycle used to be about 40 days, but now it has been greatly extended to about 80 days. In addition, brands such as Levi Strauss and H&M are also facing similar pressures in Bangladesh, where there are many brand clothing OEMs. The Nordstrom chain stores are engaged in annual sales, but supply chain pressure is causing delays in their business activities.

The epidemic situation in Vietnam is developing rapidly. From mid-June to last Sunday, the number of confirmed cases of new coronary pneumonia soared from less than 10,000 to more than 50,000. Currently, about one-third of Vietnam’s entire territory is blocked by the epidemic, and 35 million people are affected.