Vietnam’s factories lurch into crisis from worker exodus with holiday shopping on the line
- This is the latest disruption to global supply chains already roiled by labour shortages and high shipping costs due to the pandemic
- Factories had moved to Vietnam amid the US-China trade dispute, but there are fears the mass departure of workers could drag down economic growth
So when movement restrictions were eased on October 1, 36-year-old Teo, who operated cutting machines at a plastic manufacturing company, decided he had reached breaking point. He joined the thousands of workers – originally from the poorer parts of the country – who are leaving for their hometowns, an exodus that has left business owners in a state of panic over labour losses.
Of the 3.5 million migrant workers employed in Ho Chi Minh City and its neighbouring provinces, 2.1 million want to return home, according to state media reports. Images of those making the journey, many with children on motorcycles piled with personal belongings, have been shared widely on Facebook and TikTok.
Vietnam plays an outsized role in the global consumer economy, supplying clothes, shoes, and household electrical appliances to the world. With the global supply chain already disrupted by labour shortages and high shipping costs due to the pandemic, lagging production in Vietnam is expected to hit retailers and consumers from around Christmas.
