Retailers are scrambling to get their products out of Vietnam, where a surge in COVID-19 cases has forced factories to either close or operate at severely reduced capacity, The New York Times reported.
Vietnam has grown in recent years to become the second-biggest supplier of apparel and footwear to the United States after China. Vietnam made it through the first part of the pandemic relatively unscathed, but now the Delta variant of the coronavirus is on a rampage, highlighting the uneven distribution of vaccines globally and the perils that new outbreaks pose to the world’s economy.
The logjam has put a spotlight on Vietnam’s key role in outfitting American consumers. Many retailers moved their manufacturing to the country from China over the past decade because of rising costs. New tariffs on China instituted under former President Donald Trump accelerated the shift.
Analysts say the disruption may have a longer-lasting impact on future investment decisions in Vietnam and other emerging economies.
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