Vietnam supplier resumption to reboot Japan auto industry
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The resumption of auto part factories in Vietnam is set to contribute to the recovery of Japanese automakers struggling with a supply shortage due to Covid-19.
The three Vietnam factories of Japan’s Furukawa Electric, which make wire harnesses for cars, are expected to soon return to full capacity.
Factory floors “have returned to a position where they can respond to requests from a client,” Furukawa Electric President Keiichi Kobayashi said.
The fourth Covid-19 wave has forced most southern companies to operate under restrictions, but since October, utilization rates at all three factories in Ho Chi Minh City and Ben Tre Province have been recovering steadily.
Vietnam was the source of about 40 percent of Japan’s wire harness imports last year, with pandemic restrictions having forced Toyota Motor and seven other Japanese automakers to cut September production in half compared to a year earlier.
Yazaki and Sumitomo Electric Industries also restoring production at their Vietnamese plants could further help support a production comeback in Japan’s auto sector.
Questions & Answers
Q.Which specific auto part is primarily affected by the supply shortage mentioned in the article?
Which specific auto part is primarily affected by the supply shortage mentioned in the article?
The supply shortage primarily affects wire harnesses for cars. Furukawa Electric's factories in Vietnam, which make these parts, are returning to full capacity, helping Japanese automakers recover from production cuts.
Q.What proportion of Japan's total wire harness imports came from Vietnam last year?
What proportion of Japan's total wire harness imports came from Vietnam last year?
Last year, approximately 40 percent of Japan's wire harness imports originated from Vietnam. This highlights Vietnam's significant role in supplying critical components to the Japanese automotive industry.
Q.Which other companies, besides Furukawa Electric, are resuming production in Vietnam to help the Japanese auto sector?
Which other companies, besides Furukawa Electric, are resuming production in Vietnam to help the Japanese auto sector?
Yazaki and Sumitomo Electric Industries are also restoring production at their Vietnamese plants. Their efforts are expected to further support a production comeback for Japan's automotive sector, alongside Furukawa Electric.
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