Samsung Shifts Smartphone Production Reliance From Vietnam
60 per cent of Samsung’s smartphones currently come out of two factories in Vietnam, but this reliance upon these facilities is set to change next year, as the company reveals plans to restructure its production process next year.
Samsung will be moving production of at least 19 million units a year from Vietnam to factories in India and Indonesia, while also expanding production capacity in India from 60 million units a year to 93 million units.
The Indonesian factory will expand from 10 million units per year, to 18 million, with expansion costs earmarked to be A$193 million.
Vietnam will still produce the majority of Samsung’s smartphones, a reduction from 182 million units to 163 a year.
Under this new plan, Vietnam will account for 50 per cent of Samsung’s smartphone production; India will account for 29 per cent and Indonesia 6 per cent.
Increasing labour costs in Vietnam have been flagged as the reason for the production shift, although the recent shutdown of Vietnamese factories due to the pandemic sped up these plans.