Vietnam lockdown hits iPhone delivery; shoe & car companies also suffer

According to reports, lockdown in Vietnam has prevented Apple's new iPhone 13 phone from reaching customers since the camera modules are made in the country.

Vietnam has been hit by the fierce Delta wave resulting in lockdowns. The country's southern region namely Ho Chi Minh City and Binh Duong province are the main areas where the components are made, however, it has been hit by the virus resulting in many companies shutting operations in the area.

Prime Minister Pham Minh Chinh had said last week that the curbs will be lifted soon since the economy has been hit hard. The country has reported 746,600 coronavirus cases and 18,400 fatalities so far.

Ho Chi Minh city also hosts a port to export coffee which has been hit due to the lockdown. Vietnam is the second-largest producer of coffee and a major export hub. It produces coffee beans which is widely used in instant coffee.

The supply chain in clothes has also been disrupted. Internationalbrands Nike and Adidas are reportedly looking to temporarily move production as factory activity has shrunk in Vietnam.

Vietnam's state media reported that it had decided to delay reopening Phu Quoc which is a resort island with vaccination levels at a low. Tourism revenue has also been hit badly in Vietnam with lockdowns underway.

Car companies have also not been spared with Vietnam being a major player in auto parts. Toyota said it relies on Vietnam's factories for wires, frames and chairs which has been in short supply.

(With inputs from Agencies)