Footwear Supplier Yue Yuen Suspends Vietnam Production

Footwear Supplier Yue Yuen Suspends Vietnam Production

Yue Yuen Industrial Holdings Ltd, maker of footwear for companies such as Nike Inc and Adidas, suspended production in Vietnam on Wednesday amid anti-China protests over a disputed area in the South China Sea.

Click here to read FDRA’s Special South China Sea Report: a background paper on how conflict in the SCS impacts footwear production.  It is an excellent resource for every footwear company and brand sourcing in Vietnam today.

Thousands of Vietnamese set fire to factories and stormed industrial zones in the south of the country, with Taiwanese companies bearing the brunt of the damage, to protest against Chinese oil drilling in a part of the sea claimed by Hanoi.

Yue Yuen, a $4.7 billion company controlled by Taiwan-listed Pou Chen Corp, told Reuters it was unclear if production would resume on Thursday. It added there had been no damage to factory facilities and its workers were safe.

“With respect to Vietnam, we have told workers to take a day off today and the operations are closed today for the entire country,” said Jerry Shum, head of investor relations at Yue Yuen in Hong Kong.

He added that the disruption on Wednesday would not have any significant impact on the business.

The entire Reuters story can be found here.