Analysis
Vietnam: Devastating Covid-19 Wave Forces Hi-Tech Firms And Large Export Factories In Ho Chi Minh City To Suspend Operations
- Covid-19 outbreaks forces Vietnamese hi-tech firms and export factories to suspend operations.
- Samsung Electronics has been ordered to suspend operations and set up on-site sleeping accommodations for workers amid the virus outbreak in order to resume work.
- Pouyuen Vietnam is Ho Chi Minh city's biggest employer. The company will be closed for 10 days after the company said it could not fulfill the district's requirements on having all employees stay back at the factory and get the new coronavirus tests every three days instead of moving back and forth between their residencies and the factory.
Pouyuen Vietnam (Vietnam Investment Review)
Many factories in Saigon Hi-tech Park, including the Samsung Electronics CE Complex, have shut down after more than 750 Covid-19 cases were confirmed, vnexpress reported.
Saigon Hi-Tech Park houses several high technology enterprises and is located 15 km from downtown Ho Chi Minh City. With 85 companies and over 45,000 workers, the park produced nearly $21 billion worth of products.
High-tech companies operate in this park include Japanese firm Nidec (with multiple factories under Nidec, Nidec Copal and Nidec Sankyo flagships, Intel (chip assembly & test plant) and Samsung Electronics
The Saigon Hi-tech Park has recorded over 750 Covid-19 cases so far. Nearly 600 of these have been detected in the factory of stepper motor manufacturer Nidec Sankyo, which has been shut down since July 3.
Three units of Samsung have stopped operating after 46 cases were confirmed here. The company has 7,000 employees spread across 16 units.
Samsung Electronics has been ordered to suspend operations and set up on-site sleeping accommodations for workers amid the virus outbreak in order to resume work.
Intel Corp has been permitted to continue operations after setting up sleepover arrangements and reducing some of its operations.
Covid-19 Outbreak In Ho Chi Minh's Biggest Employer
Taiwan’s footwear maker Pouyuen Vietnam with over 56,000 staff was ordered to suspend operations by Ho Chi Min city authorities following an outbreak of Covid-19 cases.
Pouyuen Vietnam is Ho Chi Minh city's biggest employer. According to a report by the city's health officials, Pouyuen had detected 35 Covid-19 cases as of July 4.
The company will be closed for 10 days after it admitted that it could not fulfill the district's requirements on having all employees stay back at the factory and get the new coronavirus tests every three days instead of moving back and forth between their residencies and the factory.
Ho Chi Minh City has 320,000 workers in export processing zones and a high-tech park and almost 1.3 million in 17 industrial zones.
The Health Ministry in Vietnam announced 905 local Covid-19 cases Wednesday morning in 15 localities, putting the infection number in the ongoing wave at 31,839.
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