Protests cause shutdowns of some Vietnamese furniture plants

In Vietnam, public protests this week over the placement of a Chinese oil drilling rig in the South China Sea have caused shutdowns and minor damage at factories.

 

In Vietnam, public protests this week over the placement of a Chinese oil drilling rig in the South China Sea have caused shutdowns and minor damage at factories – including furniture plants – that could result in service disruptions in the coming weeks, sources say.

 

Most of the protests have been focused on Taiwan, Chinaese and Chinese owned enterprises in the Binh Doung Province south of Ho Chi Minh City. However, other enterprises, including Korean, Japanese and Vietnamese owned companies also have been targeted by workers who were unable to make distinctions between foreign and non-foreign owned factories.

 

One report said that the biggest protest involved some 6,000 workers in the Vietnam-Singapore Industrial Park, which houses a range of industries from apparel to electronics and footwear.

 

Some sources in the furniture industry declined to be quoted in this story or to speculate on how badly the situation could impact shipments. However, Furniture/Today saw an internal memo from one furniture factory warning of potential disruptions to deliveries.

 

Other sources said they expect the government to step in if matters get worse.

 

Richard Magnussen, CEO of case goods and upholstery resource Magnussen Home, said he learned that one of his six source factories sent workers home on Tuesday as a precautionary measure. He said he had not received reports of any damage to that facility or the other factories, but was expecting to get more information this week. He also said that the company’s distribution center in the area also was not affected.

 

Magnussen believes the Vietnamese government allowed citizens to protest as a show of national unity over the issue. However, knowing what he knows about the government, he said, he doesn’t expect officials to let things get out of control.

 

“They won’t let it affect business,” he said. “They will have it under control.”

 

Lee Boone, president of case goods importer SLF, said that he heard of some mobs gathering outside of some of his six source factories and learned that a couple sent workers home early.

 

He said no shipments have been delayed at this point. But he noted that any type of disruption could cause delays the longer it goes on.

 

“Nobody knows how long the situation will last – we will just have to wait and see,” he said, adding of the protests, “It is pretty short sighted. They are hurting their own people and their own economy.”

 

Another source who asked not to be identified, said that it is unclear what impact the situation could have on production and shipments. If the government steps in in the next day or so, the source said, the situation won’t likely have a major effect on furniture shipments. But if things drag out and get worse, it could cause some major disruptions.

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