The supply chain for Apple and Samsung could face troubles as Vietnam is struggling to combat the recent outbreak of Coronavirus. The rapid spread of COVID-19 has caused factory operations to run below capacity in the country.
According to a Reuters report, the rapid spread of the virus has impacted production capacity in Vietnam’s industrial northern provinces. These regions are responsible for supplying the Cupertino based giant and the South Korean smartphone maker, along with other global tech firms as well. Sources close to the matter added that this news arrives after the nation had successfully contained the new coronavirus for most of last year.
At the moment, Vietnam is combatting the outbreak, which is spreading quickly and has already infected more than 3,000 people in 30 of the 63 cities and provinces since late April 2021. Furthermore, this has also prompted the government to shut down restaurants and ban public gatherings in the capital Hanoi, and the southern business hub of Ho Chi Minh City. The report stated that a few business sources from the country said that their operations have been affected as some regions are under lockdown.
A source working at one of the Apple suppliers said that the company had split its workforce over two shifts, calling this a “temporary solution, for maybe two weeks.” The person close to the matter added that this was being done to avoid the supply chain being further disrupted. Similarly, even Samsung has notable operations in Vietnam, with the imposed curfew impacting its supply. Notably, Vietnam alone accounts for half of the smartphone and tablet production of the company.
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