Ho Chi Minh City, Vietnam's largest port city, has been the epicentre of the worst wave of COVID-19 affected by the Delta strain. Strict quarantine measures have forced many contract factories in Vietnam to close. Vietnam's ports continue to face congestion, which is expected to further exacerbate supply chain bottlenecks in the country.  

On August 25, Vietnam's Ministry of Health reported 12,096 new cases of COVID-19 on Friday, setting a new high. Vietnam has reported more than 10,000 new infections in a single day for seven days in a row.  

At present, in view of the serious epidemic prevention situation, ho Chi Minh City has again implemented stricter lockdown and "stay where you are" quarantine measures since August 23, Vietnam has deployed troops to the streets of Ho Chi Minh City on the same day to assist the city's lockdown measures.  

It is reported that the vast majority of enterprises in the southern industrial areas around Ho Chi Minh City have been suspended. Multinational and foreign-funded enterprises, including Chinese enterprises, have been severely impacted. The biggest impact is mainly on manufacturing enterprises, including electronics, chips, textiles, mobile phones and other.

As the pandemic worsens, Economic activity in Vietnam has plummeted. The report shows that most companies in Vietnam have large orders, which are now being lost as production is forced to halt. Many foreign partners have shifted their orders to countries such as China and Singapore.  It says the supply situation in Vietnam is very unstable.  

Nineteen cities, including Ho Chi Minh City, were under lockdown. Existing ports have been forced to suspend the reception of some containers, and the chaos is spreading northward.  In addition, the chaotic situation at the ports is spreading northward.  

Vietnam's ports are still congested. Thanks to strict prevention and control measures, the number of port workers has halved. Local truck traffic is down by 60%, and there is a huge backlog at the docks. The tighter blockade is expected to further exacerbate supply chain bottlenecks in Vietnam.  

Vietnam's maritime congestion has also boosted demand for air freight, which is causing fares to rise rapidly. Air freight prices, which usually hovered around $4 per kg at the start of the peak season in August, have more than doubled to between $8.50 and $10 per kg.  Prices are expected to reach $15 - $18 a kilogram soon.