Author: Tronserve admin
Wednesday 28th July 2021 01:21 PM
Samsung Says Galaxy Factories in Vietnam Are At 'Full Capacity'
HANOI -- Samsung Electronics unveiled its latest smartphone for the Vietnamese market on Wednesday and said its workhorse factories in the Southeast Asian country are fully operational despite the coronavirus outbreak.
The South Korean technology group announced the flagship Galaxy S20 phone at an event held in Ho Chi Minh City, Vietnam's commercial capital.
The new devices are assembled at factories located in Thai Nguyen and Bac Ninh, two provinces near Hanoi, that together ship half of all Galaxy phones worldwide.
"Samsung Vietnam's operations are in perfect condition," Nguyen Tri Thong, corporate marketing director at local smartphone unit Samsung Vina Electronics, told the Nikkei Asian Review on the sidelines of the event.
"One of every two Samsung smartphones shipped globally is from Vietnam-based facilities," Thong said.
"We are now running at full capacity," he added without elaborating.
Samsung announced the Galaxy S20 in the U.S. on Feb. 12. The phone remains set for release on March 6, which suggests that Samsung has enough capacity to produce the high-end model at Vietnamese factories for both local and international markets. International Data Corp., a U.S. research firm, estimates Samsung shipped about 296 million phones globally in 2019.
Thong said Samsung's latest device has been ready for delivery for a while, as the company always has a clear production schedule.
Samsung's confidence contrasts with rivals' struggle to fully resume their production because they largely depend on China-based assembly. Apple said on Tuesday it does not expect to meet its revenue forecast for the three months through March owing to the coronavirus outbreak.
While Samsung says its operations in Vietnam have returned to normal, there are concerns over logistics at Chinese border as the Korean company's factories source some parts from suppliers in China. Earlier this month, hundreds of containers of imported products, including parts and materials for electronics, were held up at Huu Nghi in Lang Son Province, one of the three busiest checkpoints on the border.
Samsung had planned to fly electronic components for Galaxy phones from China to Vietnam after China announced that border crossings would be closed to halt the spread of the virus. Local media report that the three busiest border gates had been re-opened for cargo shipments as of Feb. 8, while other gates will remain closed until the end of February. Samsung's cargo container shipments across the border have resumed, a source at the company's Vietnam unit told Nikkei on Tuesday.
A Nikkei report in 2018 showed that Samsung's dependence on Chinese suppliers was relatively low. Presumably, this is still contributing to Samsung's comparably smooth production in Vietnam.