COVID-19 and the Effects on Supply Chains in Vietnam

The COVID-19 pandemic has slowed global trade and disrupted supply chains. The virus, which first started in China, shut manufacturing facilities for an extended period of time. As China, known as the factory of the world, shut factories, it resulted in a ripple effect battering global supply chains with businesses struggling to source raw inputs.

This has particularly affected Vietnam, which relies on China for importing raw materials for its industries while also exporting to the country. A survey in February by the American Chamber of Commerce (AmCham) revealed that a majority of its members were reporting difficulties in sourcing supplies and materials from Chinese suppliers. In addition, 70 percent of its members stated they were operating at just 70 percent capacity.

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Pritesh Samuel