Nike could run out of sneakers made in Vietnam due to COVID-19 spike
Nike could run out of sneakers made in Vietnam due to production halt at multiple suppliers as the coronavirus pandemic worsens globally, new analysis from Panjiva, the channel’s research unit, says procurement of S&P Global Market Intelligence.
The report comes just after Nike’s suppliers in Vietnam, Chang Shin Vietnam Co. and Pou Chen Corp., recently halted production due to the rapid growth of COVID-19 infections in the region.
Nike said contract factories in Vietnam accounted for around 50% of total Nike-branded footwear in fiscal 2020.
Panjiva data shows that products made in Vietnam account for 49% of US maritime imports related to Nike and its products in the second quarter of 2021. Nike’s imports from Vietnam are dominated by footwear, which accounts for 82% of shipments over the 12 months to June 30.
“The health and safety of our teammates, as well as that of our suppliers, remains our top priority,” Nike said in a statement to Yahoo Finance. “We continue to work with our suppliers to support their efforts in response to the dynamic and unprecedented nature of COVID-19. “
“As we continue to navigate these circumstances, we expect our suppliers to prioritize the health and livelihoods of their employees and to continue to comply with legal requirements and the Code of Conduct. Nike regarding the granting of salaries, benefits and severance pay, ”the statement continued. . “We are confident in Nike’s ability to navigate these short-term dynamics, and we remain cautious in our planning.”
Vietnamese authorities have urged citizens to stay at home amid the further rise in infections this week.
According to analysis by S&P Global Market Intelligence, difficulties in Nike’s supply chain could indicate similar challenges for other sneaker giants and clothing brands in the industry. Other clothing brands such as Levi Strauss and H&M are facing similar issues in Bangladesh.
– Aron Yohannes