Factory resumption eases supply chain constraints in SEA: WSJ

Factories have reopened and production is steadily picking up in major manufacturing centres of Southeast Asia as COVID-19 cases have dropped in recent weeks, easing some of the supply chain constraints that companies blame for lost sales, reported the US’s Wall Street Journal (WSJ).

In Malaysia, Vietnam, Indonesia and the Philippines, the number of daily cases was lower than by a half compared to early September when they battled with the serious outbreak of COVID-19 caused by Delta variant.

The newspaper said Vietnam has considerably loosened restrictions since early October, making it easier for factories to reopen.

However, Apple CEO Tim Cook held that despite improvements in October, the situation in the region remains unpredictable.

Peter Mumford, Practice Head, Southeast and South Asia at Eurasia Group, said the shortage of workers could still suspend full recovery in the coming months.