Jun 15, 2018 Business & Finance Comments Off on Operations restored at Pou Chen plants in Vietnam
Taipei, Operations at four Pou Chen Corp. plants in Vietnam were fully restored Thursday according to a statement issued by the company, one of Taiwan's leading footwear manufacturers, following violent protests around the Southeast Asian country.
Pou Chen, which produces athletic and casual footwear for international brands such as Nike, Under Armour, Adidas, Reebok, Asics and New Balance, said production at its plants had been impacted by the protests, with many workers failing to show up for work.
Protesters who oppose government plans for special economic zones demonstrated over the weekend across Vietnam, including major urban centers such as Hanoi and Ho Chi Minh City.
According to international media, the economic law is expected to give foreign investors 99-year leases on land in three designated special economic zones across the country.
Opponents believe the plan would allow Chinese companies to seize Vietnamese land, media reports said.
The four Pou Chen plants are located in Ho Chi Minh City, Tien Giang province in southern Vietnam and Tay Ninh in southeastern Vietnam, according to Pou Chen.
After the protests led to the partial suspension of production, Taiwan's representative office in Vietnam asked the Vietnamese authorities to ensure the safety of Taiwanese investors in the country, according to the Ministry of Economic Affairs (MOEA).
Data compiled by the MOEA shows that investment by Taiwanese firms in Vietnam rose 51.5 percent from a year earlier to NT$680 million (US$22.57 million) in 2017.
In the first four months of this year, Taiwanese investment in Vietnam rose 233.27 percent from a year earlier to NT$400 million, indicating the increasing confidence Taiwanese businesses have in the Vietnamese market, MOEA said.
Pou Chen said the company has worked with local governments and labor unions in Vietnam to devise measures to placate production line workers, which were in part responsible for the resumption of work on the affected production lines.
Pou Chen said the incident did not adversely impact company operations or finances.
In May, Pou Chen posted NT$26.35 billion in consolidated sales, the highest monthly figure in the company's history, up 7.5 percent from a year earlier.
In the first five months of this year, Pou Chen's consolidated sales rose 3.8 percent from a year earlier to NT$118.79 billion with Yue Yuen Industrial (Holdings) Ltd., in which Pou Chen holds a 50.19 percent stake, serving as the major growth driver. Shares in Yue Yuen, which has a large scale production operation in China, are currently traded on the Hong Kong Stock Exchange
On Friday, shares in Pou Chen fell 1.49 percent to close at NT$36.40 on the Taiwan Stock Exchange, underperforming the broader market where the benchmark weighted index rose 0.67 percent.
Source: Focus Taiwan News Channel
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