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Workers In Vietnam Are Affected By The Samsung Production Slowdown Due To A Cut In Global Demand!!!

Vietnam Updates: In the news about New technology news updates, Regarding a boost in smartphone demand in the second half, Samsung is rather upbeat. Read full article to know more about this news.

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HIGHLIGHTS

• According to Samsung, output has decreased in Vietnam.
• Vietnamese workers believe that practically all business is bad.
• With regard to demand in next quarters, Samsung is optimistic.

According to employees, Samsung Electronics Ltd. has reduced output at its sizable smartphone plant in Vietnam as retailers and warehouses struggle with growing inventories in the midst of a global decline in consumer spending.

Large US retailers like Best Buy and Target Corp. warn of slowing sales as consumers tighten their belts after early COVID-era spending binges. America’s largest warehouse market is full.

According to the Vietnamese government, the effect is most noticeable in the northern province of Thai Nguyen, one of Samsung’s two mobile manufacturing facilities in Vietnam, where the largest smartphone vendor in the world produces half of its phone output.
According to its website, Samsung, which distributed about 270 million smartphones in 2021, claims the campus has the potential to produce about 100 million handsets annually.

According to Pham Thi Thuong, a 28-year-old employee at the facility, “we are going to work just three days each week, some lines are transitioning to a four-day workweek instead of six before, and of course no overtime is needed.”

Reuters was unable to determine right away if Samsung is transferring production to other manufacturing facilities to make up for the Vietnamese factory’s decreased output.

THE BUSINESS ALSO PRODUCES PHONES IN INDIA AND SOUTH KOREA.

According to Samsung, the company has not talked about lowering its annual production target in Vietnam.
In its results call last week, the South Korean tech giant expressed cautious optimism about the market for smartphones in the second half, noting that supply disruptions had been essentially fixed and that demand would either remain flat or even experience single-digit increase.
In the second half, it hopes that sales of foldable phones will surpass those of the Galaxy Note, its previous flagship model.

ON AUGUST 10, IT IS ANTICIPATED TO REVEAL ITS MOST RECENT FOLDABLES.

However, the majority of the twelve workers Reuters spoke with outside the factory agreed that business is not good. Since they have been employed by Samsung for about five years, Thuong and her friends claim to have never experienced such severe production cuts.

She claimed that supervisors had informed staff that there weren’t many fresh orders and that inventory were excessive.

Due to reduced consumer spending and a significant reduction in sales in China, research firm Gartner anticipates a 6% decline in worldwide smartphone shipments this year.

With six facilities spread out across the nation, from the factory in Ho Chi Minh City that produce refrigerators and washing machines to the factories in Thai Nguyen and Bac Ninh in the north, Samsung is Vietnam’s largest foreign investment and exporter.

The South Korean business has invested around Rs. 1,43,190 crore, or $18 billion, in Vietnam, fueling the nation’s economic expansion. Only Samsung contributes one fifth of all exports from Vietnam.

Since its arrival there about ten years ago, Thai Nguyen, which is 65 kilometres (40 miles) from the capital Hanoi, has changed from a tranquil agricultural community to a huge industrial hub that also produces phones for Chinese companies like Xiaomi Corp.

Tens of thousands of young workers were drawn to the area by generous incentives including reduced or free housing and meals, but now that work hours have been cut back, many are beginning to feel the pinch.

According to employee Nguyen Thi Tuoi, “I only worked four days last month and spent the rest of the week doing nothing, therefore my pay was cut in half.” Some employees are considering job losses, but none have been publicised as of yet.

One employee, who wished to remain anonymous because she did not want to jeopardise her position as team leader, stated, “I don’t think there will be job layoffs, only some working hour changes to meet the present global circumstances.” I sincerely hope that the current slowdown won’t persist too long and that everything will soon resume as normal.

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Sambhrama S
Sambhrama Shttps://premierenext.com/
My name is Sambhrama S, from Shimoga, Karnataka. I'm studying in MSC Biochemistry at Mysore University Mysore. I am interested in reading books, listening music, painting. I am also passionate to write good content on various day to day issues.
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