Samsung Vietnam mobile phone factory cut production and started work only three days a week. Samsung is the largest foreign investor and exporter in Vietnam. * * * There are six factories in China, but the compression of working hours makes many people feel pressure. Samsung Vietnam mobile phone factory cut production and started work only three days a week.
Samsung Vietnam mobile phone factory cut production and started work only three days a week. 1 Due to a series of reasons, global economic growth has begun to show signs of decline, and consumer spending has also declined, which is particularly evident in consumer electronics products. Therefore, major manufacturers are trying to deal with the inventory problem.
According to Reuters, employees of Samsung Electronics said that Samsung Electronics has reduced the production of its large smartphone factory in Viet Nam. According to reports, as the world's largest smartphone supplier, half of Samsung's mobile phone production is produced in Vietnam.
In addition, the largest warehouse market in the United States is saturated, and major American retailers such as Best Buy and Target Corp have warned that sales in the retail market have slowed down as shoppers began to tighten their belts after the COVID-19 outbreak.
According to the Vietnamese government, this influence is particularly obvious in the northern provinces of Thailand. The province is one of Samsung's two major mobile device manufacturing bases in Vietnam. According to the website of Samsung Electronics, in 2002 1 year, the shipment of smartphones in the park was about 270 million units, and the annual production capacity of the park was about1100 million units.
Pham Thi Thuong, a 28-year-old factory worker, said: We will only work three days a week, and some production lines will be adjusted from six days a week to four days a week. Of course, there is no need to work overtime. "
Thuong and her friends who have worked with Samsung for about five years said that they had never seen such a serious reduction in production. "Of course, there will be an off-season every year, usually around June-July, but the off-season means not working overtime, not working on weekdays like now."
She revealed that the factory manager said that their inventory level was already high and there were not many new orders.
Reuters isn't sure whether Samsung is moving its production line to other manufacturing bases to make up for the reduction of production in Vietnamese factories. The company also produces mobile phones in South Korea and India. Samsung told Reuters that it had not discussed reducing its annual production target in Vietnam.
According to foreign media reports, informed sources revealed that global consumer spending has shrunk and the inventory of retailers and warehouses has risen sharply, forcing Samsung Electronics to reduce the production capacity of Vietnamese smartphone factories.
Consumers have tightened their wallets after the consumption wave, and the largest storage market in the United States is saturated, while large American retailers such as Best Buy and Taji have also issued sales decline warnings.
Employees of Samsung Electronics said that Samsung Electronics has reduced the production of its large smartphone factory in Vietnam, and about half of Samsung's mobile phone production capacity comes from Vietnam. The Vietnamese government said that Nguyen, in the north of the country, which is one of Samsung's two major mobile device manufacturing bases in Vietnam, was particularly affected.
Samsung is the largest foreign investor and exporter in Vietnam. * * * There are six factories in China. Nearly 10 years ago, Samsung began to build a factory in Taiyuan province, 65 kilometers away from Hanoi, the capital of Vietnam, which turned this area from a lifeless agricultural area into a huge industrial center. The factory here offers generous benefits, including food and accommodation subsidies, which attracts tens of thousands of workers to work here. However, the compression of working hours has made many people feel the pressure.
Factory workers said that they only work three days a day, and some production lines will be adjusted from six days a week to four days a week without overtime. He also said that at this time last year, at the height of the epidemic, business activities were even more active. In addition, some workers said that June and July are usually off-season, but there is no overtime pay in the off-season. The manager said that the stock was high and there were not many orders.
It is uncertain whether Samsung is shifting production to other manufacturing bases to make up for the reduction in production in Vietnam. The company also produces mobile phones in South Korea and India. The company is relatively optimistic about the demand for smartphones in the second half of the year. They said in a conference call last week that the supply chain has basically recovered, and the demand will remain stable, and may even achieve single-digit growth.
Samsung is relatively optimistic about the demand for smartphones in the second half of the year. They said in a conference call last week that the supply chain has basically recovered, and the demand will remain stable, and may even achieve single-digit growth.
Gartner, a market research firm, predicts that global smartphone shipments will drop by 6% this year due to consumer spending cuts and declining sales in China.
Samsung Vietnam mobile phone factory cut production and started work only three days a week. Under the background of economic uncertainty sweeping the world, Samsung factory in Vietnam, a manufacturing town, has become the latest footnote of the great economic change in 2022: workers have begun to lose their jobs.
As more and more American retailers reported in their second-quarter financial reports that they had too much inventory and consumers' purchasing power declined, the weight of these words has been transmitted to Southeast Asia. According to media reports from two Samsung production bases in Taiyuan province in northern Vietnam, the capacity utilization rate of the world's largest smartphone supplier has dropped to about half.
According to the data of Samsung official website, among the 270 million mobile phones shipped by the company every year, the production capacity of the Vietnamese factory alone reaches 654.38 billion.
Samsung factory: work three days a week.
According to the media on Thursday, the on-site worker was quoted as saying that he only worked three days a week, instead of six days a week. Other production lines can work four days a week. There is no doubt that there is no need to work overtime now, and the natural overtime pay has also been ruined.
The workers said gloomily that even when the epidemic was the worst in the same period last year, the Samsung factory was still in full swing. It is so deserted now, and there has been no such serious reduction in production for at least five years.
Workers said that although the work in June-July last year was not busy, it only meant that there was no need to work overtime, instead of cutting the working day now. The managers also told the workers that the inventory is high now and there are not many new orders.
This appearance is also different from the company's business progress. Although most global consumer electronics giants have warned about the slowdown in consumption, Samsung is a relatively optimistic one. It is not only expected that the supply chain problem will be basically solved, but also that the market demand will be at least flat in the second half of the year, or there will be a single-digit percentage increase.
As an important part of Samsung's mobile phone strategy, the company hopes to push the sales of folding screen mobile phones to surpass the previous flagship mobile phone Note series, and its latest folding screen mobile phone is expected to be released on August 10.
"Sanxing Town" Stepped into the Fog
As a big financier in Vietnam, Samsung Group is not only the largest foreign investor in the country, but also the largest exporter in Vietnam. One company contributes one-fifth of Vietnam's exports.
Samsung has six factories in Vietnam, Taiyuan and Beining provinces mainly produce mobile phones and parts, and Ho Chi Minh City also produces refrigerators, washing machines and other products.
Samsung brought money to invest in Taiyuan, Vietnam about ten years ago, only 65 kilometers away from the capital Hanoi. Then the Korean industrial giants turned this agricultural city into the current industrial center. In addition to Samsung, the industrial chain here is also producing Xiaomi mobile phones.
Employment opportunities and free accommodation have attracted tens of thousands of Vietnamese young people to come here, but they are also confused by the current difficulties and reduced income.
However, for the current situation, the Samsung factory said that it has not discussed the issue of reducing the production target of the Vietnamese factory. Workers also said that the expected reduction in working hours is enough to cope with the changes in global demand, and there is no wind of layoffs in the factory at present.