Demise of Samsung’s Note 7 phone to significantly hurt Vietnam’s exports
The decision of South Korean electronics giant Samsung to stop producing its flagship Galaxy Note 7 worldwide may adversely affect the export revenue of Vietnam, home to two of the company’s major mobile production complexes, local reports say.
“Samsung’s decision to kill off the Galaxy Note 7 will certainly impact Vietnam’s exports this year, since the company’s exports represent about 20 per cent of the nation’s shipments,” says Nguyen Mai, chairman of Vietnam’s Association of Foreign Invested Enterprises. The recall of 2.5 million smartphones after complaints of exploding batteries contributed to a $1.1 billion decline in exports in September, according to Vietnam’s statistics office.
The permanent halt of production “includes a Samsung plant in Vietnam that is responsible for global shipments [of the Galaxy Note 7],” Yonhap news agency quoted an official at a supplier for Samsung as saying.
Samsung Electronics is invested with $11.2 billion in Vietnam, including a $2.5 billion mobile production complex in Bac Ninh, and a $5 billion such facility in Thai Nguyen, both northern provinces. The two plants account for some 30 per cent of Samsung’s global smartphone sales.
The South Korean company is Vietnam’s biggest exporter, shipping about $33 billion of electronics last year. The total workforce estimated to be tied to Samsung in Vietnam is about 400,000 people, including 130,000 company employees.
The decision of South Korean electronics giant Samsung to stop producing its flagship Galaxy Note 7 worldwide may adversely affect the export revenue of Vietnam, home to two of the company's major mobile production complexes, local reports say. “Samsung’s decision to kill off the Galaxy Note 7 will certainly impact Vietnam’s exports this year, since the company’s exports represent about 20 per cent of the nation’s shipments," says Nguyen Mai, chairman of Vietnam’s Association of Foreign Invested Enterprises. The recall of 2.5 million smartphones after complaints of exploding batteries contributed to a $1.1 billion decline in exports in September, according...
The decision of South Korean electronics giant Samsung to stop producing its flagship Galaxy Note 7 worldwide may adversely affect the export revenue of Vietnam, home to two of the company’s major mobile production complexes, local reports say.
“Samsung’s decision to kill off the Galaxy Note 7 will certainly impact Vietnam’s exports this year, since the company’s exports represent about 20 per cent of the nation’s shipments,” says Nguyen Mai, chairman of Vietnam’s Association of Foreign Invested Enterprises. The recall of 2.5 million smartphones after complaints of exploding batteries contributed to a $1.1 billion decline in exports in September, according to Vietnam’s statistics office.
The permanent halt of production “includes a Samsung plant in Vietnam that is responsible for global shipments [of the Galaxy Note 7],” Yonhap news agency quoted an official at a supplier for Samsung as saying.
Samsung Electronics is invested with $11.2 billion in Vietnam, including a $2.5 billion mobile production complex in Bac Ninh, and a $5 billion such facility in Thai Nguyen, both northern provinces. The two plants account for some 30 per cent of Samsung’s global smartphone sales.
The South Korean company is Vietnam’s biggest exporter, shipping about $33 billion of electronics last year. The total workforce estimated to be tied to Samsung in Vietnam is about 400,000 people, including 130,000 company employees.
