The Strategist

Nike, Adidas footwear manufacturer may stop working in Vietnam

04/14/2020 - 03:43

The largest manufacturer of sports shoes Pou Chen Corp may temporarily stop production in Vietnam in connection with the spread of coronavirus, according to Bloomberg.

The authorities in Ho Chi Minh City, where the factory is located, are concerned that it continues to operate. A letter of the city’s mayor to the country's prime minister expresses concern that in the event of an outbreak of coronavirus, there is a risk of infecting not only of the company’s employees, but also neighboring districts and residents of nearby provinces. In total, the company now employs 70 thousand people.

It is noted that production can be canceled until April 15, however, if the isolation in the country is extended after this date, the restriction for the factory will also be prolonged. After the decision of the mayor to stop production, the decree must be signed by Prime Minister.

Pou Chen Corporation is the largest manufacturer of sports shoes. It manufactures shoes for Nike, Adidas, and New Balance and has offices in China, Indonesia, Mexico, and Vietnam.