When rapper Kanye West’s Adidas Yeezy Boost sneakers go on sale at 7am, they can sell out in under a minute. Few other shoes made by the German business and US rival Nike are as popular. But this year, “out of stock” signs should become an increasingly common sight.
The two sportswear companies have moved most of their footwear production from China to Vietnam. A record number of Covid cases in the Southeast Asian country have prompted authorities to close plants operated by suppliers. These include Pou Chen, Feng Tay Enterprises, Eclat Textile, Changshin and Sports Gear.
Nike and Adidas had good reasons to switch to Vietnam over the past decade. It has among the lowest labour costs in the region. The minimum wage averages $170 per month. About 80 per cent of all footwear exports are made for the duo within a manufacturing sector employing over 11m.