Bac Giang province implements dual task to prevent manufacturing chain disruptions

Bac Giang province is working to keep manufacturing chains from breaking

The first 300 workers in Bac Giang, one of the epicentres of the pandemic, were injected against COVID-19 last week. The employees worked for Funing Precision Component Co., Ltd. The number of vaccinated employees will increase to 150,000 in the upcoming time.

At the same time, the first eight enterprises of IZs were allowed to resume operations in order to avoid a break in the manufacturing and business chain. They will be cautiously monitored by the provincial authorities to avoid the pandemic’s expansion.

Nguyen Xuan Ngoc, deputy director of Bac Giang Industrial Zones Management Authority, told VIR that the eight enterprises selected are part of global manufacturing chains and are producing essential goods. Notably, they are part of the supply chain of global groups like Apple, Toyota, Honda, and Samsung. In case the interruption is prolonged, the groups will lack input materials for production. If we wait until the pandemic ends to allow suppliers to resume operations, the supply chains will be broken.”

“Besides, they have to meet safety standards for their employees, which are regulated by the provincial steering committee about COVID-19 prevention and control,” Ngoc said.

Eight enterprises that were allowed to resume operation are Newing Interconnect Technology Co., Ltd., Fuhong Precision Component Co., Ltd., Fuyu Precision Component Co., Ltd., New Hope Hanoi Co., Ltd. – Bac Giang branch, Si Flex Vietma Co., Ltd., Vietnam TEQU Hope Animal Feed Co., Ltd., Sanwa Manufacturing Vietnam Co., Ltd., and Bac Giang Import-Export JSC.

Although there are no special statistics about the damage caused by the interruption to enterprises in Vietnam, according to Reuters, production of Apple's iPhone 12 at a Foxconn factory in India slumped by more than 50 per cent because the factory was forced to suspend operation after 100 workers were diagnosed with COVID-19 and were sent into isolation until late May.

Foxconn's shares fell by as much as 6.2 per cent after the Reuters report. In addition, the COVID-19 pandemic returned to Taiwan after more than a year, further threatening the operations of Foxconn. Bac Giang has three Foxconn facilities, if these companies are interrupted for a long time, Foxconn's global operations will be further interrupted.