Factory Closures in Southern Vietnam

Since July, the epidemic in Southern Vietnam has been severe and the production lines in major industrial parks have inevitably been interrupted or suspended. The V-Trust Vietnam team based in our Ho Chi Minh (HCM) office would like to share the below updates:

Are all factories around Ho Chi Minh region shut down?

Since the outbreak point is concentrated in Ho Chi Minh, the main areas of Long An, Ho Chi Minh, and Binh Duong currently require factories to be closed. However, there is a "3 on the spot" (on-site production, eating and drinking) rule - if the factory can provide workers with a whole day’s meals and accommodations to ensure that workers do not need to travel back and forth due to work, the factory can continue production. 

How many factories have the conditions to meet the “3 on the spot” rule?

Only very few enterprises with a small number of employees try to maintain "3 on the spot" production, while most businesses with a large number of employees have chosen to suspend production until the epidemic subsides.

How long will this requirement last?

Businesses are expected to suspend production for about 2 more weeks, or even longer if the epidemic situation is still complicated and prolonged.

Is there any impact on logistics?

The container and truck delivery can still run smoothly. The condition for trucks to run on the road is to register and be issued with a permit card. The driver must stick this tag on the cabin. 

Does it have an impact on product inspection?

It does, because non-factory workers are restricted from visiting the factory. For orders that need to be inspected in Southern Vietnam and shipped urgently, we can choose to inspect them by a virtual inspection online. 

For more information about Supply Chain Management and Quality Control Services in Asia, please contact info@v-trust.com or visit our website.

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