KUALA LUMPUR: Poh Huat Resources Holdings Bhd 's main operating subsidiary in Vietnam is temporarily suspending operations in two provinces to comply with government directives to close all non-essential businesses in an effort to contain the spread of the Covid-19 virus.

       It said in a filing with Bursa Malaysia that Poh Huat Furniture Industries Vietnam Joint Stock Company halted production at its factories in the Binh Hong province on July 17 and in the Dong Nai province on July 20.

       "Under Directive No. 16 which became effective 19 July 2021, only factories, businesses and service establishments producing and providing essential goods and services are allowed to open and asked to ensure workers follow strict health guidelines issued by Vietnam Health Authority.

       "Poh Huat Vietnam is implementing mitigation steps to contain the spread of COVID-19 at the premises, and safeguard the health its of employees who may have been exposed to the virus," it added.

       The production stoppage at Poh Huat Vietnam's facilities in the two provinces are expected to result in delays in the shipment of orders to its US customers.

       According to Poh Huat, it is in discussion with the affected customers for the rescheduling of delivery dates and is assessing the impact on Poh Huat Vietnam and the group.

       Poh Huat Vietnam will mitigate the delay in some orders as it has a certain amount of ready inventory.

       If necessary, it would increase production with extended shifts upon recommencement of manufacturing activities, it said.

       The group is monitoring the Covid-19 development in Malaysian and Vietnam and assessing its impact on the operations and financial performance of the Group.

       At 12.30pm, shares in Poh Huat were down two sen or 1.48% to RM1.33 apiece on the back of 417,00 units traded.