Vietnam's Pandemic Surge Trigger Supply Chain Concerns for Apple, Samsung: Reuters

Author: Anusuya Lahiri | May 28, 2021 01:25pm

• The pandemic resurgence has compromised Vietnam’s factory production locations that house Apple Inc (NASDAQ: AAPL) and Samsung Electronics Co Ltd (OTC: SSNLF) suppliers, Reuters reports.
• Over 3,000 people have contracted the virus in 30 of its 63 cities and provinces since late April.
• Four business sources acknowledged operational hit following lockdown, which triggered supply chain disruption concerns.
• One Apple supplier had temporarily divided its workforce over two shifts.
• Vietnam had begun vaccinating workers in the two most affected provinces Bac Ninh and Bac Giang, based on the health ministry statement.
• Bac Ninh is responsible for significant Samsung operations and imposed a curfew and other travel restrictions. Vietnam accounts for 50% of Samsung’s global phone and tablet production.
• Last week, Vietnam’s government advised Bac Ninh and Bac Giang provinces to drive efforts to prevent an industrial production disruption. LG Electronics Inc (OTC:LGEIY), Foxconn Technology Co Ltd (OTC:FXCOF), and Luxshare have operations or supply chain companies in the area.
• A Xiaomi Corp (OTC:XIACF), Huawei Technologies Co., Ltd, Vivo Communication Technology Co. Ltd, and Guangdong Oppo Mobile Telecommunications Corp, Ltd supplier’s workers were living and working within the industrial zones in Bac Ninh.
• The government planned to gradually reopen four industrial parks closed a week earlier due to the pandemic.
• Some of the lower-tier South Korean suppliers were also struggling.
• Price action: AAPL shares traded lower by 0.19% at $125.04 on the last check Friday.

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