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Coronavirus: Vietnam races to cut disruptions for suppliers of tech firms such as Apple, Samsung

  • Cases in Vietnam have spiked in the past month, including in the northern industrial production hubs, as the government eyes economic recovery plans
  • If the latest outbreak cannot be contained, Vietnam could lose the manufacturing gains it has made amid the US-China trade war, an analyst says

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Workers at a factory line in Hanoi. File photo: Reuters
When coronavirus cases began rising in North Vietnam’s industrial production hubs two weeks ago, Ruby La realised she had a mounting problem on her hands.
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The chief executive of Ngoc Nghia, a firm that supplies plastic packaging to Coca-Cola and other brands, had a few dozen manufacturing workers doing three shifts a day at their factory in Bac Ninh, next door to epicentre Bac Giang.

The two provinces – which together have 3.1 million residents and house hundreds of factories that are plugged into the global supply chains, including Apple partner Foxconn and 13 of Samsung Electronics’ suppliers – have contributed to some 60 per cent of new infections in Vietnam in the past month.

Authorities on May 18 shut four of six industrial estates in Bac Giang, where the Vietnamese arm of Japan’s electronic parts maker Hosiden makes up the largest cluster, recording over 1,000 cases as of Monday. Some factories in Bac Ninh were also locked down.

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La’s company raced to isolate workers in response to the outbreak. Manufacturing staff have been working and living between the factory and a designated hotel, with the firm paying for the accommodation and food. Other employees such as managers and office staff are working from home.

“We have to ensure that our supply chain is stable and is able to react to the situation of the industry,” said La, whose firm produces about 7 billion product units annually.

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