Can Sports Vietnam Co., Ltd (Tay Ninh) (Vietnam)

The subject - Can Sports Vietnam is a wholly-owned subsidiary of Elephant Step Co., Ltd. The company gets involved in manufacturing footwear and accessories for the Nike brand. In the period of 2020-2021, the outbreak of Covid-19 pandemic caused disruption in the supply chain in the textile, garment, and footwear fields. Its net sales constantly decreased as a result. During the 4th resurgence of pandemic in the third quarter of 2021, the subject arranged a “one route, two destinations” production model. Accordingly, the subject prepared accommodations for workers near the workplace in order to control infection and maintain operation.In 2022, the subject's operation basically returned to normal status and increased production to serve the demand right after the pandemic was controlled. However, the conflict between Russia and Ukraine occurred and disturbed macro-economic factors. Inflationary pressure in major export markets like USA, EU, Japan, South Korea, and China caused a decline in orders and the textile, garment, wood, and footwear industries were mostly affected, especially in the first half of 2023. In the second half of the year, the world economic recovery has been significantly slowed down when new geopolitical tensions are escalating in other regions in the world, marked by the war between Hamas and Israel. According to press information, in recent times, the attack of Houthi forces (backed by Iran) in the Red Sea area has potentially reduced global shipping capacity by 20%. This could be a new threat to the world commodity supply chain, increasing inflationary pressure which has already been high in the globe. In this context, many experts forecast that the purchasing power is harmed, especially for non-essential products.