The Vietnamese government said the impact was particularly pronounced in the country’s northern province of Tai Nguyen, home to two of Samsung’s largest companies in the country.cell phoneThe location of the production base. As the world’s largest smartphone maker, about half of Samsung’s mobile phone production comes from Vietnam.
According to information on the official website, Samsung’s smartphone shipments in 2021 are about 270 million units, while the annual production capacity of the factory is about 100 million units.
Pham Thi Thuong, a 28-year-old worker, said: “We only work three days a week. Some production lines have been adjusted from six days a week to four days a week. Of course, we don’t have to work overtime.”
“At the height of the Covid-19 pandemic last year, business activity was even more brisk, and now it’s sluggish.”
It is not yet clear whether Samsung will move production capacity in Vietnam to other regions. The company also makes phones in South Korea and India.
Samsung said it was considering lowering its annual production target for Vietnam.
The South Korean tech giant remains relatively optimistic about smartphone demand in the second half of the year, saying on a conference call last week that the supply chain has largely recovered and demand will remain flat and may even see single-digit growth.
According to the company’s goal, sales of its folding-screen phones will surpass the previous-generation Galaxy Note flagship in the second half of the year. The company is expected to release its latest foldable phone on August 10.
But dozens of workers interviewed outside the factory said the business situation was not optimistic.
Pham Thi Thuong and her friends have all worked at Samsung for about five years, but they have never seen the company reduce production capacity so much before.
“There is definitely a low season every year, usually from June to July, but the low season is just no overtime, not a reduction in working days like it is now,” she said.
She said managers told employees that there was a lot of inventory and not many new orders.
Market research firm Gartner expects global smartphone shipments to fall 6 percent this year as consumers cut spending and sales in China are lower.
Samsung is Vietnam’s largest foreign investor and exporter, with a total of six factories in the country, including the northern industrial hubs of Thai Ninh and Bac Ninh provinces (where smartphones and components are mainly produced), as well as electronics in Ho Chi Minh City.refrigeratorandwashing machinefactory.
The South Korean company invested $18 billion in Vietnam, fueling the country’s economic growth. Samsung alone contributes one-fifth of Vietnam’s exports.
Samsung began building a factory in Tai Nguyen province, 65 kilometers from Vietnam’s capital Hanoi, nearly a decade ago, transforming the area from a lackluster agricultural region into a sprawling industrial hub. includeMilletMany Chinese brands, including those, also manufacture phones there.
The factories here offer generous benefits, including subsidies for meals and lodging, which attract tens of thousands of workers. However, the compression of working hours has made many people feel the pressure.
“My salary was cut in half last month because I only worked four days and had nothing to do the rest of the time,” said a worker named Nguyen Thi Tuoi.
Some employees fear layoffs at the company, but no official announcement has yet been made.
“I don’t think there will be layoffs, but it’s just a reduction in working hours to adapt to the current global situation,” said a worker who asked not to be named, “I don’t think the current situation will last long and it will return to normal soon. “