Several Taiwanese manufacturers in Vietnam have been struggling with production problems over the past few weeks, as the country’s south remains under a COVID-19 lockdown.
Pou Chen Corp (寶成工業), an original design manufacturer for international footwear brands, said that production at its factory in Ho Chi Minh City has ground to a halt, so it expects a significant drop in revenue at that factory from July to last month.
If the COVID-19 outbreak in southern Vietnam subsides in the fourth quarter of this year and employees are allowed to return to work, they might be able to put in some overtime, which would make up for the third-quarter losses, Pou Chen said.
Photo: Reuters
In the south of Vietnam, the government’s strict lockdown order was on Thursday last week extended for at least another two weeks.
An executive at Pou Chen’s Vietnamese subsidiary said that the company has been adhering to government regulations and has been trying to speed up the vaccination of its 100,000 workers in an effort to help curb the COVID-19 outbreak.
The subsidiary manufactures shoes not only in Ho Chi Minh City, but also in Dong Nai and Tay Ninh provinces in southeastern Vietnam, as well as Tien Giang Province in the south, the executive said.
Another Taiwanese contract footwear maker, Feng Tay Enterprises Co (豐泰企業), said production at its Vietnamese factories has been suspended for about two months.
Feng Tay said it had planned to reassign production to China, Indonesia and India, but its factories in those countries are almost at full capacity, so it has decided to wait until it is allowed to resume work in Vietnam.
Its clients are aware of the situation and are prepared to wait, the company added.
Fu Sheng Industrial Co (復盛應用), a Taiwanese company that makes golf club heads, said its production in Vietnam had been suspended since the end of July, but it was optimistic that the situation would gradually return to normal in the fourth quarter, as the vaccination rate in Vietnam has been rising.
Fu Sheng said it would boost production when the Vietnamese government lifts the lockdown.
Some production has been reassigned to China to make up for the losses in Vietnam, but that has been limited because its factories in China are almost at full capacity, the company said.
Demand for golf club heads is strong in Japan, South Korea and the US, Fu Sheng added.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence
RSS