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Vietnam has “completely collapsed” (gần như sụp đổ) due to strict (khắc nghiệt) Covid mitigation

(giảm thiểu) policies (chính sách), according to Ankiti Bose, co-founder and CEO of Zilingo, a fashion (thời trang) supplier to big brands that sell their products on Amazon and Shopify.

A rising number of Covid infections (ca nhiễm) and low vaccination rates have prompted the Vietnamese government to shut down a number of factories (nhà máy) that manufacture (sản xuất) apparel (đồ thêu ren) and shoes.

“It’s really bad timing for Vietnam. The holiday season shipments need to happen right away,” Bose told CNBC.

She said clients are seeking to increase their manufacturing footprint in countries beyond Vietnam.

Bangladesh, India, Sri Lanka and Indonesia are all good options,” she said. They “are functional at the moment in terms of factory capacity ... so Vietnam could stand to lose a lot in the very short term.

Joyce Chang, global head of research at JPMorgan, said, “Despite a draconian (hà khắc, khắc nghiệt, tàn bạo) quarantine (cách ly) policy, Vietnam’s new cases of Covid-19 remain elevated, and the macroeconomic stress is spreading to the manufacturing sector.”

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