Koda announced that on July 11, the Provincial People’s Committee of Long An Province, Vietnam has issued a directive requiring companies operating in Long An Province to temporarily suspend their operations due to high Covid-19 infections.
The directive is effective of July 13 and is s to facilitate necessary arrangements to be made by these companies for their workers to work while limiting contagion risks. These companies shall submit an application to the local authorities for approval to resume their operations.
In compliance with the directive, the group’s factories in Long An Province have temporarily been close. The group is in the midst of applying to the local authorities in order to continue part of the Vietnam operations while working towards resuming full operations gradually.
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The Vietnam Operations have since set up procedures to conduct Polymerase Chain Reaction (PCR) test for its staff and workers, as part of its proposal to local authorities for resuming operations. The group has informed its export customers on the temporary closure of the Vietnam operations and will make arrangement with its supply chain partners.
Koda says that while the temporary closure of its Vietnam operations will result in delay of production of certain orders, part of these orders may be fulfilled by scheduled shipments from the readily available inventories.
Meanwhile, the group will continue to closely monitor the situation and follow up on the status of its application. It is currently also assessing its financial impacts in the event that approval for its application to resume operations is delayed.
Shares in Koda closed at 82 cents on July 13.
Photo: Samuel Isaac Chua/The Edge Singapore
