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21 Jul 2021

News Nike News

Nike Facing Sneaker Shortages Amid Vietnam Factory Closures Due to COVID

vietnam factory worker
via Aaron Joel Santos/Flickr

Two of Nike’s biggest suppliers in Vietnam – Chang Shin Vietnam Co. and Pou Chen Corp. – have halted production due to the country’s worsening . The closures could result in a shortage of sneakers for the brand, with contract factories in Vietnam making up approximately half of total Nike branded footwear globally.

Reported by CNBC via S&P Global Market Intelligence, Vietnam accounted for 49 per cent of US seaborne imports linked to Nike and their products in the second quarter of 2021, with footwear accounting for 82 per cent of that number.

‘The health and safety of our teammates, as well as that of our suppliers, remains our top priority,’ a Nike spokeswoman told CNBC via an emailed statement.

‘We continue to work with our suppliers to support their efforts in response to the dynamic and unprecedented nature of COVID-19. As we continue to navigate these circumstances, we expect our suppliers to prioritise the health and livelihoods of their employees and continue to comply with legal requirements and the Nike Code of Conduct on the provision of wages, benefits and severance. We are confident in Nikes ability to navigate these near-term dynamics and we remain prudent in our planning.’

Nike aren’t the only brand suffering supply chain issues. Brooks CEO Jim Weber also expressed his concerns, revealing his company are roughly on an 80-day cycle for shipping, compared to 40 days prior to the pandemic.

‘Theres no question the supply chain is strung out in our industry,’ he said.

As if sneakers weren’t already hard enough to cop!

We’ll bring you updates on the situation as they come to light.


21 Jul 2021

News Nike News

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