Free Subscription

  • Access 15 free news articles each month


Try one month for $4
  • Unlimited access to news,insights and opinions
  • Quarterly and weekly magazines
  • Independent research reports and forecasts
  • Quarterly webinars with industry experts
  • Q&A with retail leaders
  • Career advice
  • 10% discount on events

Vietnam says its Nike manufacturers back to full operations

About 200 contracted factories that make sportswear for Nike across Vietnam have resumed operations after months of Covid-19 suspension, the government said on Wednesday, as it races to get its key manufacturing sector back on track.

Nearly 80 per cent of Nike’s footwear makers and half of its apparel providers in Vietnam were forced to halt production in mid-July, which cam after authorities had imposed restrictions on movement to stop a major outbreak from spreading.

Almost half of the American sports giant’s footwear is made in Vietnam.

Vietnam until the middle of this year had among the world’s best coronavirus containment records, with limited disruption to its crucial manufacturing sector.

However, that changed after May, when an outbreak emerged in its southern economic hub Ho Chi Minh City and spread to surrounding manufacturing provinces.

The government-induced shutdown led to pressure from foreign business groups, which warned they could shift operations abroad.

Those curbs were lifted a month ago, but the country is now facing labour shortages. At least 3 million people in Vietnam work in textiles and footwear manufacturing.

The country has also prioritised vaccinating employees working in industrial parks to spur manufacturing activities.

Nike will continue to expand investment and production in Vietnam, the government said in its statement, which followed a meeting between Prime Minister Pham Minh Chinh and Nike’s Chief Sustainability Officer, Noel Kinder, on the sidelines of the COP 26 summit.

Vietnam has recorded over 930,000 infections in total and 22,000 deaths, with about a third of the country’s population vaccinated.

  • Editing by Martin Petty, of Reuters.

You have 7 free articles.

Masterclasses are for professionals only

Only $4 USD p/m for first 3 months
Become a Professional Already a professional? Login
  • Daily exclusive Members Only content straight to your inbox
  • Access to exclusive Retail Week events including all 4 Masterclasses 28 February - 3 March
  • Retail insights and intelligence
  • On-demand videos with industry professionals
  • Weekly careers advice specific to retailers
  • Independent research reports and forecasts
  • Q&A with industry experts
  • Content, content, content! Weekly and quarterly magazines