The entire Southern Region of Vietnam has been placed under a two-week lockdown as confirmed Covid-19 cases exceeded 3,000 daily at the end of July. After successfully containing the virus for much of the pandemic, Vietnam is facing a rapid spread of infections that has led to movement restrictions in around one-third of the country. Sources: Tropical Timber Market Report, Reuters, Timberbiz
It has registered a total of 145,000 cases and 1,306 deaths, 85% of which were recorded over the past month.
Southern Vietnam is a major area for furniture production and the country recently overtook China as the largest source of US furniture imports.
The lockdown order includes the Mekong Delta and Ho Chi Minh City metropolis the country’s financial and economic hub (a third of Vietnam’s population).
The timber industry had been doing well until mid-July but the infection situation has become much worse.
Many companies tried to accommodate workers on-site in order to keep factories running but this was not successful.
The likelihood is that that many factories will soon have to close. Infections rates are rising steeply in Binh Duong, Dong Nai and Ho Chi Minh City, localities that contribute 70% of total exports.
