A significant decline in manufacturing orders from the US and Europe to China due to a collapse in global demand has also negatively affected Vietnam.

According to US cable news channel CNBC, the number of manufacturing orders from the US to China has been heading downards in recent times. For this reason, the Worldwide Logistics Group in the US has forecast that factories in China will close two weeks earlier in the lead up to the Lunar New Year holiday in late January.

The CNBC said a significant fall in US and European manufacturing orders has also affected Vietnam, which is emerging as an assembly center as many companies relocate production from China to the country.

The shortage of production orders together with rising lending interest rates has forced many companies in Vietnam to close their factories instead of signing new contracts, according to the Asia-based global shipping firm HLS.