Samsung's Vietnam factory cuts mobile phone production again

Samsung Electronics' official data showed that in November before the Christmas sales season, Samsung cut its smartphone production in Vietnam for the second time this year.

In recent years, most of Samsung's smartphones have been produced in Vietnam. Last year, Samsung mobile phones made in Vietnam accounted for 60% of the company's total production capacity. This year's goal is to produce half of Samsung's smartphones in Vietnam. At present, according to people familiar with the matter, the proportion of smartphone production capacity at the Samsung factory in Vietnam will continue to drop from 50% to 40% next year.

It is not yet known whether this is a signal of Samsung's general production reduction or the transfer of manufacturing.

Samsung has invested about US$18 billion in Vietnam and has six factories, two of which focus on smartphone manufacturing.

According to the data from the National Bureau of Statistics of Vietnam, in November, the output of smartphones in Vietnam fell by 9.3% year-on-year to 20.6 million units. In November, the manufacturing industry of consumer electronics products fell by nearly 20% compared with the same period last year. month down. Separately, total exports fell 8.4% year-on-year to US$29.18 billion in November, facing headwinds from a slowing global economy.

As early as the first half of this year, affected by the epidemic, Samsung began to reduce the production scale of its Vietnam factory. According to employees, although Christmas is approaching, compared with previous years, workers are allowed to take seasonal holidays.

It is said that during the period from October to November, Samsung plans to produce only 34 million smartphones, which is a huge drop compared with the same period in previous years.

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