Due to a series of reasons, the global economic growth began to show signs of decline, consumer spending has also declined, which can be especially reflected in the consumer electronics. Therefore, the major manufacturers are trying to find ways to deal with the problem of inventory.
According to Reuters, Samsung Electronics has scaled back production at its large smartphone factory in Vietnam, employees said. According to the report, as the world’s largest smartphone supplier, half of Samsung’s cell phone production is produced in Vietnam.
In addition, the largest U.S. warehouse market is saturated, with major U.S. retailers such as Best Buy and Target Corp warning that retail sales have slowed as shoppers begin to tighten their belts in the wake of the new crown epidemic.
The Vietnamese government says the impact is particularly evident in the northern Vietnamese province of Thai Nguyen. The province is one of Samsung’s two major mobile device manufacturing bases in Vietnam. Samsung Electronics’ website shows that the park will ship about 270 million smartphones in 2021, and that the park has a capacity of about 100 million units a year.
We will work only three days a week, and some production lines will be adjusted from the previous six days a week to four days a week, and of course no overtime,” said Pham Thi Thuong, a 28-year-old factory worker.
Thuong and her friends, who have worked together at Samsung for about five years, said they have never seen such a severe cut in production. “Of course there is a slow season every year, usually around June – July, but a slow season means no overtime, not no work on weekdays as well, as is the case now.”
She revealed that factory managers say their inventory levels are already high and that there are few new orders.
Reuters could not determine whether Samsung is shifting production lines to other manufacturing sites to make up for the reduced production at its Vietnam plant, which IT House understands also makes phones in South Korea and India, among other places. For its part, Samsung told Reuters that it has not yet discussed lowering its annual production target in Vietnam.
