The Taiwanese brand of athletic footwear is plagued by labor shortages in Vietnam, exacerbating supply chain disruptions. Clients include Nike, Adidas and Reebok, writes Worldfootwear.com.
Production at Pou Chen's factories in Ho Chi Minh City, Longan and Dong Nai has been cut since July due to restrictions imposed by the Vietnamese government to combat the outbreak of the COVID-19 pandemic in the southern regions. The company had hoped to resume production in full this month, but is now dealing with an acute labor shortage.
According to Reuters, Mr. Lu Chi Yuan, director of Pou Chen 'Vietnam, said in a statement following a meeting with the Ho Chi Minh City government that "about 6% of its employees have quit." He explained that the company "faces a shortage of labor, delays in fulfilling large orders, and disruption to production and export activities." The company then asked the authorities to help place job advertisements in order to increase the factory staff.
Tens of thousands of workers fled Vietnam's industrial centers in October as restrictions were lifted, further complicating the manufacturing sector.