From schools shutting down to overfilled hospitals, the pandemic has affected the world in numerous ways. Now, it seems that Nike is facing a shortage of sneakers as the Covid-19 pandemic worsens in Vietnam. Nike’s suppliers in Vietnam were forced to halt production as Coronavirus swept through the country. Their two suppliers: Chang Shin Vietnam Co. and Pou Chen Corp were forced to halt manufacturing. Since April, Vietnam has recorded over 83,000 infections and 335 deaths.
Vietnam accounts for 49% of U.S. imports to Nike and 82% of footwear shipments in the last year. Nike CFO Matthew Friend stated that he “expects supply chain delays and higher logistics costs to persist throughout much of 2022”. Another Nike spokesperson stated, “The health and safety of our teammates, as well as that of our suppliers, remains our top priority”. As a result of the production halt, Nike’s shares were down 1.3%. Demand from consumers vastly outweighs the supply with the recent production halt in Vietnam not helping. While a sneaker shortage is not beneficial to Nike and its consumers, the more important issue is the health and safety of those affected by Coronavirus. In the coming days, Vietnam would institute a 15-day lockdown in the capital city of Hanoi. This comes as a result of a record 7,295 cases in 24 hours. Vietnam has currently administered 6,959,197 doses of the COVID vaccines so far which is only enough for 3.6% of their population. To combat the recent surge in infections, Vietnam has shut down several major cities, built several field hospitals, and plans to open up more vaccination centers. https://www.spglobal.com/marketintelligence/en/news-insights/blog/qa-data-that-delivers-automating-the-credit-risk-workflow https://www.npr.org/2021/07/24/1020162186/vietnam-hanoi-lockdown-covid-cases-coronavirus https://www.cnbc.com/2021/07/19/nike-could-run-out-of-shoes-from-vietnam-as-covid-worsens-sp-global.html https://finance.yahoo.com/news/nike-could-run-out-of-sneakers-made-in-vietnam-as-the-covid-cases-spike-there-191540146.html
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On June 13th, 12 people were killed and 39 were seriously injured in a gas explosion in a Chinese market. Occurring in the Hubei province city of Shiyan, the explosion sent approximately 150 people to the hospital. The explosions occurred around 6 a.m. and most of the damage occurred in the food market. Rescue workers were seen working to free people who were trapped in the fallen debris and bricks.
Many people have started to call for regular safety inspections and measures so that this type of incident does not occur again. Xi Jinping, China’s leader, stated that there were “profound” lessons to be learned from this explosion. There have been previous instances where gas explosions have occurred; among the worst is a 2015 explosion at a chemical warehouse in Tianjin that killed 173 people. The incident was likely due to illegal construction and unsafe storage of dangerous materials. A day before this June 13th explosion, 8 people died and three were injured in a chemical leak in Guiyang. Tying this global incident with a similar case back home, such as the Florida condo collapse, shows how we need to implement safety measures and not bypass certain safety regulations. It was very disheartening to hear about the Florida condo collapse and the gas explosion in the Chinese market. In the future, I am hoping we will implement some changes both locally and globally to prevent these types of accidents. https://www.nytimes.com/2021/06/13/world/asia/china-shiyan-gas-explosion.html https://www.voanews.com/east-asia-pacific/gas-explosion-central-china-kills-least-12 https://abcnews.go.com/International/wireStory/gas-explosion-northern-china-kills-11-78248836 |