Samsung moves factories from China to Vietnam

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Samsung factoy VietnamSamsung Electronics, the world’s largest smartphone manufacturer, is shifting factories from China to Vietnam to secure lower wages and defend profit margins as growth in sales of high-end handsets slows, the Taipei Times reported.

A new $2-billion plant in Vietnam is slated to reach full production in 2015 and lift the share of Samsung’s overall smartphone production done in Vietnam to 40 per cent. Another handset factory in Vietnam is due to begin operations in February 2014.

Samsung’s new plant is expected to make 120 million handsets a year by 2015. That would double the current output from the country. Samsung shipped 400 million handsets globally in 2012.

With about one-third of the global smartphone market, Samsung may eventually produce as many as 80 percent of its handsets in Vietnam, said Lee Seung-woo, an analyst at IBK Securities Co in Seoul who has been tracking the company for more than a decade.

Hanoi has approved $13.8 billion of new foreign projects this year through November 20, a 73 per cent increase on a year earlier, according to the General Statistics Office in Hanoi. Of this, South Korea led with $3.66 billion.

Intel Corp, the world’s largest chipmaker, opened a $1 billion assembly and testing plant in Ho Chi Minh City in 2010. Nokia said its facility near Hanoi producing Asha smartphones and feature handsets became fully operational in the third quarter of 2013. LG Electronics Inc is building a new complex to make televisions and appliances as part of a $1.5 billion investment plan.

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Reading Time: 1 minute

Samsung Electronics, the world’s largest smartphone manufacturer, is shifting factories from China to Vietnam to secure lower wages and defend profit margins as growth in sales of high-end handsets slows, the Taipei Times reported.

Reading Time: 1 minute

Samsung factoy VietnamSamsung Electronics, the world’s largest smartphone manufacturer, is shifting factories from China to Vietnam to secure lower wages and defend profit margins as growth in sales of high-end handsets slows, the Taipei Times reported.

A new $2-billion plant in Vietnam is slated to reach full production in 2015 and lift the share of Samsung’s overall smartphone production done in Vietnam to 40 per cent. Another handset factory in Vietnam is due to begin operations in February 2014.

Samsung’s new plant is expected to make 120 million handsets a year by 2015. That would double the current output from the country. Samsung shipped 400 million handsets globally in 2012.

With about one-third of the global smartphone market, Samsung may eventually produce as many as 80 percent of its handsets in Vietnam, said Lee Seung-woo, an analyst at IBK Securities Co in Seoul who has been tracking the company for more than a decade.

Hanoi has approved $13.8 billion of new foreign projects this year through November 20, a 73 per cent increase on a year earlier, according to the General Statistics Office in Hanoi. Of this, South Korea led with $3.66 billion.

Intel Corp, the world’s largest chipmaker, opened a $1 billion assembly and testing plant in Ho Chi Minh City in 2010. Nokia said its facility near Hanoi producing Asha smartphones and feature handsets became fully operational in the third quarter of 2013. LG Electronics Inc is building a new complex to make televisions and appliances as part of a $1.5 billion investment plan.

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