Samsung Electronics Factory Loses Tens of Millions of Dollars a Day! Vietnam Epidemic Causes Heavy Damage to Factory

The smartphones produced by Samsung's factories in Bac Ninh, Vietnam and Thailand account for about half of its global smartphone production. However, in May this year , due to the severe outbreak of the new crown epidemic in Bac Ninh Province, Hanoi, Vietnam, factory production was forced to stop, which directly led to Samsung's top spot in global smartphone sales in June being handed over to China's Xiaomi.

In July this year , the new coronavirus outbreak in Vietnam broke out. The most seriously infected area was Ho Chi Minh City, Vietnam. In the past week, Vietnamese medical teams completed 1.6 million nucleic acid tests in extremely high-risk and high-risk areas in Ho Chi Minh City, and discovered 64,300 new coronavirus patients .

The epidemic situation is severe, and the government has stipulated that Ho Chi Minh City should "stay put" to prevent and control isolation measures, which will last until September 15. Under the epidemic environment, many factories in Vietnam, especially in Ho Chi Minh City, have been forced to stop production. It is understood that when all factories in Saigon Science Park have stopped production, Samsung's TV and home appliance production plants in Ho Chi Minh City have been operating for more than a month, and its factory workers have been sleeping in nearby schools and nearby factories.

Samsung Electronics' Ho Chi Minh factory employs 7,000 workers and produces Samsung TVs, washing machines, refrigerators and vacuum cleaners. Although it has been operating under the pressure of the epidemic for more than a month, the impact of the epidemic has not been avoided. In recent weeks, the labor force has been reduced and the factory's total production capacity can only reach 30% to 40% of the usual level .

These Samsung Electronics products are sold to Southeast Asia, Europe and the United States. The impact of the epidemic has forced the factory productivity to decline. The reduction in total production capacity has also caused Samsung to suffer huge economic losses. It is understood that the closure of Samsung Electronics' Ho Chi Minh factory is estimated to cause losses of up to 17 billion won (about 14.55 million US dollars) in one day .

Supply chain disruptions caused by the epidemic will also directly affect Samsung Electronics' sales on Black Friday, which is the largest shopping carnival in the United States in November. At this time point, insufficient product supply will directly lead to damage to Samsung Electronics' profits.

Ho Chi Minh City, Vietnam

Samsung Electronics suffers losses due to epidemic