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Footwear manufacturer and leading contractor to international brands such as Adidas and Nike, Taiwan’s Pou Chen Corp has suspended operations at its plant in Ho Chi Minh City on account of a Covid-19 outbreak in Vietnam’s business hub as of July 14, 2021. Shares in Pou Chen closed down 1.3% on the same day the announcement was made.
Vietnam's health ministry said in a statement that production at Pou Chen's Pouyuen Vietnam factory would be suspended for 10 days. According to Reuters, state media said 49 infections had been detected at the plant in Ho Chi Minh City, which is at the epicentre of the country's worst coronavirus outbreak.
After successfully containing the disease for much of the pandemic, Vietnam has faced a more stubborn outbreak since late April. Pouyuen Vietnam, the largest employer in the city with 56,000 workers, was unable to arrange for its workers to sleep at the site as required by authorities to allow the business to remain open, the health ministry said.
Reuters reported that state media said authorities also ordered 29 companies in the Tan Thuan Export Processing Zone, an industrial park, to suspend production due to the outbreak.