COVID-19 has led to a decline in Vietnam’s textile, leather and footwear production. The Vietnam Textile and Apparel Association informs the country has closed around 35 per cent textile and garment factories. Vietnam is the world's third largest textile and garment producing country behind China and Bangladesh. The leather and footwear industry, which has 15 per cent share in Vietnam market, is likely to suffer from the current disruption. Production at all 88 factories in the country has been suspended due to COVID-led disruptions. Adidas’ Taiwanese supplier Pouyuen, with factories in Vietnam, has suspended production.

The Delta variant of Covid that has hit the country has raised questions about the viability of the Vietnamese supply chain so much so that Apple and Google have delayed their shift to Vietnam. In the first eight months of this year, Vietnam earned $21.2 billion from garment and textile exports, and $12.6 billion from footwear exports with year-on-year rises of 9.7 per cent and 16.2 per cent, respectively, according to the General Statistics Office.