New wave of Covid 19's impact on industrial zones in Vietnam and the government's reaction

30/05/2021
By the end of 2020, the wave of shifting Apple's production line to Vietnam is becoming clearer and clearer. The two main assembly partners of Apple in Vietnam, Luxshare and Foxconn, both have factories in industrial parks in Bac Giang province.

Apple is "numb" when the factory in Bac Giang stops working due to COVID-19


According to an announcement on the morning of May 18, the leader of Bac Giang province had to decide to stop 4 industrial parks in the province because the COVID-19 epidemic spread too quickly.

Currently, the Luxshare-ICT factory is located in Van Trung Industrial Park, Viet Yen district. While Foxconn's factory is located in Quang Chau Industrial Park, Viet Yen district. These are all hot spots of Bac Giang province during the fight against COVID-19.





According to the leader of Bac Giang province, in order to completely stamp out the epidemic, businesses in the above industrial zones need to stop operating for 1-2 weeks. Currently, Foxconn is building Apple's iPad and MacBook tablet assembly lines at their factory in Bac Giang province. The lines in Vietnam will also get components from China to serve the assembly and packaging process. Currently, Foxconn has a factory located in Bac Giang and proposed to the Government to build 3 social housing projects in the North, next to its industrial parks with a total investment of more than 7,400 billion VND.

If the epidemic is not controlled in the next 1-2 weeks, the impact on Apple and the global supply will be huge. Currently, Bac Giang has been the production site of many Apple devices, including iPad, AirPod, Apple Watch, and MacBook and HomePod mini.



Not only Bac Giang, another manufacturing partner of Apple, Goertek, also located a factory in Bac Ninh. However, this industrial park is still operating normally because the disease is partly controlled. Meanwhile, the situation at Foxconn, LuxShare is still very complicated. If the epidemic cannot be controlled, Apple will really have to absorb the pain in Vietnam.

With the new strain, the spread of the virus is getting faster and faster, especially in the closed and crowded environment of industrial parks. In addition, the factory is characterized by a relatively low ceiling and must use an air-conditioning cooling system, thereby creating more favorable conditions for the virus to spread quickly among workers.

Apple device assembly factory in Bac Giang restores production


After more than 10 days of shutting down due to the impact of the COVID-19 epidemic, the Apple product factory in Bac Giang is about to resume operations.

According to information from TaiwanNews, a factory in the North of Vietnam owned by Foxconn Technology Group, the world's largest contract electronics manufacturer, after taking Covid-19 prevention measures as required. Requests from the government may be allowed to resume operations as early as Friday (May 28).

 


The above factory located in Van Trung Industrial Park (Bac Giang) had to be closed since May 18 due to the complicated change of the epidemic situation. Here is the production line of iPad and MacBook laptops for Apple. The Taiwanese corporation was also recently hit hard by the pandemic outbreak in India, where iPhone production lines are located. Many experts and leaders of Foxconn were forced to return home to avoid the risk of infection.

According to Bac Giang newspaper, Chairman of the Provincial People's Committee Le Anh Duong has just signed and promulgated a plan to reorganize production activities for enterprises in Dinh Tram, Quang Chau, Song Khe - Noi Hoang, and Van Trung industrial zones. The condition for businesses to return to production is to only employ workers who have tested negative for COVID-19 twice from May 9 to the present.
 


Accommodation will be arranged in a business or a separate dormitory. Workers outside the workplace and concentrated accommodation are not allowed to have contact with the community. Before reorganizing production, the enterprise arranges to welcome workers to the gathering place at least three days before working and test for all. In addition, enterprises must arrange housing areas to be used for the purpose of concentrated isolation for workers when necessary.

Businesses must carry out COVID-19 screening tests for all employees, 7 days apart in the first month. In the following months, every month, 50% of employees will be randomly tested before the 15th of each month.

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