China could witness returning manufacturing units back to its nation amid rising COVID-19 cases across South-East Asian countries
The Covid-19 has already ravaged India with record-breaking cases all over the country, however it is now showcasing a similar trend in other South-East Asian countries as well
The Covid-19 has already ravaged India with record-breaking cases all over the country, however it is now showcasing a similar trend in other South-East Asian countries as well. The surge in the COVID-19 cases can end-up shifting the manufacturing units of many South-East Asian countries to China.
The U.S.-China trade war coupled with COVID-19 initiation had resulted many companies to shift their manufacturing operations out of China, which ended-up moving their distribution and production networks for various goods and services. As a result, countries like India and Vietnam had benefited initially as the companies were looking forward to move their set-up across these countries.
However, the situation is now showcasing a downturn, and the supply chains could move back to their initial places in China as COVID-19 cases surge in India and Vietnam.
Before the pandemic even started, countries witnessed many factories moving-out of China including Telecomm giants like Samsung, and Foxconn as they stated their move to set-up supply chain operations in Vietnam, and India. The surge in COVID-19 cases across the two nations have forced factories under the Taiwanese contract manufacturer Foxconn, which has been a major supplier of Apple products, to shut-down their operations in Vietnam and India
The move could put the relocation of manufacturing units back to these countries on a halt. The key issue pertaining to the problem these companies are confronting is that international travel has been suspended, as a result MNCs cannot send their staff to Vietnam and India for setting up and initiating new operations in these countries.
The situation is expected to benefit the already well-off country of China. However, the point of discussion remains intact until the situation remains the same across the two nations of India and Vietnam.