As the epidemic spreads, Taiwanese businessmen in Vietnam have also been affected.
At around 3 pm on February 1, the Vietnamese government announced without warning that it would refuse entry to flights from Taiwan. Thousands of Taiwanese businessmen were rushing back to Vietnam to preside over the start of construction in the New Year. , so I was stuck at Taoyuan and Kaohsiung airports.
And made the decision to reject “all flights from mainland China” before May 1.
After several hours of emergency negotiations, before 7 o’clock in the evening that day, it was reported that Vietnam had lifted the ban and would not refuse entry to Taiwanese flights. The Taiwanese businessmen who were waiting at the airport to return to Hanoi and Ho Chi Minh City to preside over the start of the New Year project breathed a sigh of relief.
“Between Taiwan and Vietnam, flights between the two places carry up to 270,000 passengers every month, including 300,000 to 400,000 Taiwanese businessmen and Vietnamese who come to Taiwan to study and work. “Assuming that flights between Taiwan and Vietnam are suspended for three months, 800,000 passengers will be affected!” analyzed a director of a Taiwanese bank in Vietnam.
“All Taiwanese businessmen have created 1.4 million job opportunities in Vietnam, which is about 30% of the number of employed people in Vietnam. The Spring Festival has just passed, and it is the time when salaries and bonuses are paid. Taiwanese businessmen If we can’t go back for three months, who will pay the salary? If it’s serious, it might trigger a workers’ riot!” A Taiwanese businessman in Pingyang analyzed the Vietnamese government’s considerations of halting the lifting of the ban in time.
The flow of people and logistics are closely linked to China, and the impact of the disconnection is huge
Taiwan Although the flight issue with Vietnam has been temporarily resolved, the three-month suspension of flights between mainland China and Vietnam still causes headaches for many Taiwanese businessmen. In areas of South Vietnam such as Ho Chi Minh City, Binh Duong, and Dong Nai where traditional production is the main focus, many companies have moved their original production lines in China to Vietnam. Most of the production management systems are dominated by mainland cadres. Many Taiwanese production line directors are from Taiwan. “Lu Gan”.
The inability of a large number of cadres to return prevented the factory from starting smoothly
A Taiwanese businessman who moved a factory from China to Vietnam estimated that in the Ho Chi Minh City area, there are as many as 50,000 Taiwanese businessmen with Chinese passports managing factories; Many mainland-funded enterprises have moved to Vietnam to set up factories in the Sino-US trade war, and the total number of mainland cadres in Vietnam should be no less than 100,000.
The management team of a factory relocated from the Pearl River Delta to Vietnam has more than 100 mainland cadres. When Wuhan pneumonia was reported in the mainland before the Spring Festival, the Taiwanese business leader who had experienced the SARS epidemic immediately became alert and asked his mainland colleagues in important management positions to return to work in Vietnam early.
When Vietnam issued a flight ban on February 1, Lu Qian was immediately arranged to fly to Cambodia, which is friendly to China and can apply for a visa on arrival, and then return to Vietnam by land. Mainland Chinese The cadres were then quarantined for 14 days and thus were able to avoid Vietnam, which immediately closed land customs clearance the next day. Since these cadres are the focus of production management, in order to avoid affecting production quality, we had to reduce production capacity and switch to two-shift production during this period to overcome this difficulty first.
A listed electronics manufacturing factory moved its production capacity from China to Binh Duong Province, Vietnam last year due to the Sino-US trade war in order to diversify risks. The newly built factory has been completed and there are many foreign orders. It has been finalized, and hundreds of mainland cadres have also applied for visas, and they can start work just waiting for the start of the New Year. Now Vietnam suddenly announced a suspension of flights, and mainland cadres were unable to come, causing chaos in the production line planning. The industry owner said helplessly: “Customers will understand such a temporary situation!”
A global brand underwear foundry with 10,000 employees in Haiphong, North Vietnam, employs more than a hundred mainland workers. At the start of construction, we also encountered the same situation of whether all management cadres could be in place.
Wuhan pneumonia has also brought an impact on logistics. A director of a Taiwanese bank who has worked in Vietnam for many years assessed that the industrial chain of Taiwanese businessmen in Vietnam interacts very closely with the mainland, and they provide a lot of mutual support. Although some industries have relatively complete supply chains in Vietnam, in terms of price and output, It will be difficult for Vietnam to completely replace China for a while.
Most manufacturers will maintain inventory for an extra month, and its impact will depend on how long it takes for the epidemic to be controlled.
Some garment and shoe factories in Cambodia will temporarily suspend production due to lack of raw materials
The Garment Manufacturers Association of Cambodia (GMAC) published a notice on February 11 explaining the lack of raw materials for Cambodia’s garment and shoe factories.
The notice stated that about 60% of the raw materials for Cambodia’s garment and shoemaking industry are imported from China. Some garment and shoe factories in Cambodia will suspend production for one month or two starting from the end of this month because of insufficient raw materials imported from China to Cambodia. The reason is the ongoing outbreak of new coronavirus pneumonia in China. Some factories have not yet Return to work.
GMAC also said: “The raw material stocks of some factories are estimated to be used up next week, or the next week, and then a temporary suspension of production will be announced. Due to the suspension of production of some factories in China, it may cause the production of Cambodian factories next week. The production line lacks raw material supply every month. Due to this problem, the factory has no choice but to temporarily suspend production for 1 or 2 months.”
Cambodia��Already considering moving the production line to Türkiye. ”
Polish fashion retailer LPP has previously said that it is negotiating with factories in Turkey, Bangladesh and Vietnam as a backup plan. In response to possible further delays in production in China.
“In 2019, China’s garment exports were approximately US$170 billion. “Hadi Karasu added: “According to our calculations, about 1% of these orders will be transferred to Turkey, and the total value is expected to be around US$2 billion. ”
In 2019, Turkey’s garment exports totaled US$17.7 billion. As an export-oriented economy, any situation that promotes its export growth will be instrumental in improving its current situation. The fiscal deficit has greatly promoted the Turkish government to achieve the preset economic growth target of 5%.
Mustafa Gultepe, head of the Istanbul Apparel Exporters’ Association, said, More and more existing and new customers are communicating with Turkish factories, and Turkey’s manufacturing industry is capable of taking on these additional orders. “Since the outbreak of the new coronavirus, there have been clothing retailers coming,” Gultepe said. Ask about prices and output of Turkish factories. I think if the impact of this epidemic lasts for five to six months, there will be a massive relocation of orders (from China) starting in May. ”
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