Samsung production facilities in Vietnam contribute about half of the total global product sales of Samsung gadgets. These facilities take care of the North American and European supply chain, as well. Vietnam is seeing a surge in Covid cases. Alarmingly, it’s a new mutation that is very dangerous and is affecting people at a great pace. The Vietnamese Government, as a result, has decided to impose strict restrictions, starting from 2nd June 2021. Vietnam controlled the first wave of the Corona Virus effectively. Due to suggested strict measures by the government, Samsung production facilities in Vietnam might see a delay in production, contributing to the global shortage of Samsung’s mobile line-up and display panel facilities.
“With the outbreak of Corona 19, the production capacity of IT companies stationed in Vietnam will drop sharply and the global supply shortage of Samsung smartphones and display panels is expected to intensify”
We know that Samsung is making 120 Hz LTPO displays for Apple (Source GSMArena) and is also gearing up its own S22 series line-up production. The government imposed restrictions on all production factory employees, (including Samsung) to travel, to and fro from home.
Vietnamese Government has advised workers to either stay at home or inside factories for which Samsung must provide dormitories. This seems impossible due to the fact that almost 20-25000 employees are working in Samsung production facilities, 24/7. Reports are surfacing through Korean news agencies that, as a result of restriction, Samsung might face delays in the production line-up of upcoming mobiles and display panels.
Samsung Vietnam Global Production
As per Samsung official, “The Vietnamese subsidiary is thoroughly complying with the quarantine guidelines of the Bak Ninh-sung government in order to prevent the spread in the region,” and, “We are looking for a solution for this.”
Six Samsung factories are operating in Bac Ninh, Thai Nguyen, and Ho Chi Minh City in Vietnam. These include its two biggest smartphone factories in the globe and its largest home electronic items factory in Southeast Asia. In Park Ninh-Sung, there are not only mobile phone factories but also Samsung display panel factories. Here 20,000 to 25,000 employees serve. Samsung’s factories in Vietnam, produce 120 million products per year, including items for markets all over the globe like North America and Europe.
Vietnam Increasing Corona Cases Will Delay Samsung Smartphone Productions
The local media of the Bac Ninh Province, Vietnam, reported the occurrence of a new mutant of coronavirus. This mutant is a mixture of Indian and British mutations and is severely affecting the residents of Vietnam. The mutant virus replicates and spreads at a faster speed than before and about 6856 cases are already reported.
Due to this, the government is restricting the movement of its residents. Samsung has claimed that it will also implement strategies to reduce the spread of new mutant and face-to-face contact of its employees. According to the government, companies must provide temporary shelter to their employees so that there is no need for traveling. However, it would be impossible to accommodate a massive number of employees. Thus due to the Samsung staff in quarantine in Vietnam, smartphone production would definitely get delayed.