As a result of the COVID-19 pandemic, industries across the world have experienced fluctuating levels of supply and demand. Manufacturing is among the top industries that saw an increase in the demand for products. This meant companies outsourcing production to other countries needed to maintain the quality of the products. Businesses like QIMA were brought in to inspect and test these products before they were distributed.
Countries like China, India, and Vietnam were partnered with US companies to manufacture products at an accelerated rate to satisfy a global supply demand. According to Bloomberg, this increase occurred primarily at the end of 2020, when companies were beginning to recover financially from the pandemic. Previously, China was considered the top third world manufacturer, but spread of the coronavirus significantly impacted production. This allowed countries like Vietnam to take over large portions of China’s partnerships. A sourcing survey in early 2021 was completed by QIMA and indicated that, among their top 3 manufacturers, 43% of US companies used Vietnam.
Due to this shift, manufacturers in certain areas experienced a surge in production where there previously had not been. Brought in for inspections, product testing, and audits, QIMA ensures the quality of products being produced satisfies their clients. Some factors that impacted the manufacturing industry included government lockdowns, a rise in coronavirus cases, safety precautions, and financial deficits resulting from the above factors.
Vietnam’s handling of the COVID-19 outbreak allowed them to protect their resources and citizens. By enacting isolation procedures, it contained infected individuals, slowing the spread of the virus. This preemptive act put Vietnam ahead of its competitors in the economical recovery efforts for the country. As China’s infection rate soared, US companies in need of alternative outsourcing turned to Vietnam to fulfill the demand for manufacturing.
The demand for manufacturing in Vietnam, and thus the need for companies like QIMA to provide inspections, has shown record results in 2021. This is compared to its percentage two years prior in the first quarter of 2019. The quality reported by QIMA in inspection reports from the beginning of 2021 lists Vietnam at the bottom with a 7.4% noncompliance ratio. Audit reports in this country ranked fourth with an 8.0 score, succeeded by Italy, Pakistan, and France as noted in QIMA’s second quarter barometer report for 2021. Among the shift in manufacturing and supply chains between 2020 and early 2021, many countries implemented changes in their production methods, relying more on technology to solve problems.
Despite their precautions, Vietnam’s manufacturing industry suffered. Restrictions on travel, increases in pricing and tax, employee layoffs, and companies forced to file for bankruptcy put on a strain the country’s economy. Large corporations, such as those in the automobile industry, experienced a drastic decline in production and financial status as a result. While manufacturers in third world countries benefited from increased outsourcing, compliance violations in these countries also increased. As the economy recovers from the effects of the pandemic, Vietnam and countries like it should continue to face a growth in manufacturing. This means QIMA and its competitors will be needed to ensure quality production methods are enforced.