Coronavirus targets bigger market players

The sporting goods market may soon face a shortage of Nike and Adidas sneakers. One of the suppliers of Nike and Adidas shoes, the Taiwanese company Pou Chen, has suspended work due to the coronavirus outbreak.

The Ho Chi Minh City-based Pou Chen shoe manufacturing facility stopped working after 49 coronavirus cases were detected at the plant. Reportedly, the plant's management was unable to provide its employees with overnight accommodation on the territory of the enterprise. As a result, many staff members tested positive for the coronavirus. The Ministry of Health of Vietnam ordered the company to cease operations for at least 10 days. The virus outbreak adversely affected the share price of the largest manufacturer of branded sports and casual shoes. At the close of trading, Pou Chen stocks lost 1.3%.

Notably, Vietnam was on the list of the few countries that successfully contained the spread of the virus at the very beginning of the pandemic. However, since the end of April 2021, the country has recorded a sharp increase in cases. Factories in the northern provinces, including suppliers of Apple, Samsung, and other global technology companies have been unable to work at full capacity due to the rapid spread of the disease and strict restrictions on movement.