Samsung Invests $3 Billion in a New Vietnamese Manufacturing Plant
Ryan Simmons / 6 years ago
In an interesting move, Samsung have announced that they are to spend up to $3 billion on a smartphone manufacturing plant in Vietnam.
The new plant will join their existing $2 billion factory in the country, making the Korean giant’s presence in Vietnam even larger. There seems to be a rather noticeable shift in manufacturing from China to Vietnam, as Samsung’s plans add to Intel, LG, Panasonic and Microsoft’s expanded manufacturing presence there. It seems that it is becoming cheaper to manufacture in Vietnam over China, as tax breaks and very cheap labour make it very attractive to companies like Samsung.
Daniel Gleeson, a senior analyst at the IHS Technology consultancy told the BBC “In a way China is a victim of its own success – it’s becoming so successful as an economy that it’s becoming too expensive to do a lot of the manufacturing it used to attract”. It’s been observed that China is becoming more involved with the design and development of consumer technology devices, with the advent of companies like Xiaomi and Lenovo.
Source: BBC News