Lunar New Year business planning for Asian supply chains

Lunar new year business planning starts now, because Lunar New Year 2019 falls on February 5 and factories across Asia will slow down or stop around that date. If you buy from China or Vietnam, the orders you place in the next few days will decide whether goods arrive in March or in April.

This guide shows the dates to know, a simple timeline, and the staffing steps that keep your own team calm. It is general business information, not legal advice.

Know the dates for 2019

In China, the State Council General Office published the 2019 holiday plan on December 6, 2018. The Spring Festival holiday runs from Monday, February 4, to Sunday, February 10. Two weekend days, Saturday, February 2, and Sunday, February 3, are working days to make up for the break.

Many workers travel home well before February 4. Many also return late. Some factories stay quiet until after the Lantern Festival, which falls on February 19. So plan for a slow period that is longer than the official week.

In Vietnam, the Ministry of Labour, Invalids and Social Affairs announced a Tet break for government officials and employees running from Monday, February 4, to Friday, February 8. With the two weekends on each side, that gives nine days in a row, from February 2 to February 10. The notice covers public bodies. Private firms set their own rest days, so ask each supplier for its exact dates in writing.

Sources: General Office of the State Council of China, Circular about Public Holiday Arrangement, December 6, 2018, as summarised by China Briefing (china-briefing.com/news/chinas-2019-holiday-schedule/); Ministry of Labour, Invalids and Social Affairs of Vietnam, Announcement No. 3238/TB-LDTBXH, August 6, 2018 (english.luatvietnam.vn/announcement-no-3238-tb-ldtbxh-dated-august-06th-2018-of-the-ministry-of-labor-war-invalids-and-social-affairs-regarding-2019s-national-and-tet-hol-165768-Doc6.html).

Build a backward timeline for orders

Start with the day you need the goods in your warehouse. Work backward through shipping, customs, and production. Then add a buffer for the holiday gap.

Here is a simple way to do it. First, find the last day your supplier will ship before the break. Second, find the first day it will ship after the break. Third, count the days in between and treat them as lost time. Any order that cannot ship before the break joins a queue when the factory reopens, and that queue is often long.

If you cannot finish a full order in time, split it. Ask for the urgent items to be made first and shipped before the break. Let the rest follow after the holiday. A split order costs a little more in freight, but it keeps your shelves stocked.

Talk to suppliers early and in writing

Send each supplier a short email this week. Ask for four things: the last production day, the last shipping day, the first day back at work, and the date when full staffing returns. Keep the answers in one shared sheet.

Confirm quantities, specifications, and payment dates before the break, not during it. Messages sent in the holiday week often sit unread. A clear purchase order that is signed before the factory closes avoids a stalled order later.

Also ask your freight forwarder about space. Ports, trucking firms, and customs offices can also run on reduced hours near the holiday. A short call now is cheaper than an empty container slot later.

Sources: China Briefing, China's 2019 Holiday Schedule, with its advice that foreign firms plan for working weekends and holiday gaps (china-briefing.com/news/chinas-2019-holiday-schedule/).

Plan stock and cash

Because new goods may arrive later than usual, check how many weeks of stock you hold. If the answer is less than the length of the likely gap, raise the next order now. Do this for your best sellers first.

Cash needs change too. Suppliers may ask for deposits before they close. Customers may also pay more slowly around the holiday. Look at your bank balance for the next six to eight weeks and note when big payments fall due.

Small firms often feel this most. If you cannot hold extra stock, tell your own customers about possible delays. Honest notice is better than a missed promise.

Look after your own team

Lunar New Year matters to staff in many offices across Asia, not only in factories. Employees in Singapore, Malaysia, Vietnam, China, and elsewhere may take leave to be with family. Ask your team for leave plans early, so you can cover key tasks.

Check your local public holiday calendar and your staff contracts. Rules differ by country, and private employers often set their own schedules. If staff must work on a public holiday, follow the pay rules where they work. When in doubt, ask a local adviser.

Set one contact person for urgent supplier issues during the break. Share that name and phone number with your key suppliers. This keeps small problems from growing while most people are away.

A short checklist

Use this list over the next week. Confirm each supplier's holiday dates in writing. Place or split urgent orders. Book freight space. Review stock and cash. Set team cover. Send a short notice to customers if delays are likely.

A calm plan made in January saves a rushed one in March. The holiday comes every year, so keep these notes and update the dates each time.