Vietnam’s Bicycle Factories Slowly Resume Operations
BINH DUONG, Vietnam – Overlooking the damage caused by last week’s riots only some of the Taiwanese bicycle companies in Vietnam could start up production again. The impact of the turmoil on the bike industry’s supply chain is limited. According to industry insiders the production peak for the 2014 sales season in Europe is already over once the supplies to Europe slow down as a result of the riots in Vietnam.
In an uproar of national sentiments a total of 224 Taiwanese plants were damaged of which 18 were set on fire and five being completely destroyed, according to statistics compiled by Taiwan’s Ministry of Economic Affairs. The Taipei Times reported this morning that a total of 1,100 Taiwanese companies have not yet resumed their operations due to security concerns.
Kenda back in business
Kenda Rubber chairman Yang Ying-ming said in local media that the company’s factory located in Dong Nai Province, east of Ho Chi Minh City, already resumed operation last Thursday afternoon since it has not incurred any material losses. Kenda Rubber Industrial’s factory in Trang Bom had no damage at all.
Delay of model year 2015 introduction
Bor Yueh International which makes luggage carriers for Tubus and RackTime is among those companies that were heavily damaged. In a press release Tubus reports that the complete IT system has been taken or destroyed. The 300 employees and the factory were left undamaged. According to GM Ditmar Slik it is unavoidable that the 2015 model year introduction will be delayed. “Currently we have no concrete information on delivery times and delivery delays because the situation in Vietnam first has to settle down and it is still unclear whether more protests can be expected.”
KMC and ASTRO
KMC also reported that it resumed operations last Thursday in Dong Nai as its production lines were not damaged. Frame manufacturer ASTRO is among the companies that faced looting as Bike Europe reported last week. ASTRO expects to resume operations by the end of the month.
It is doubtful whether the situation is stable again Vietnam. Yesterday some 3,000 Chinese workers left Vietnam on ships chartered by their government. The Chinese government stated that it is still ‘highly concerned about the safety of Chinese citizens in Vietnam’.