Samsung refutes rumours on shifting production from Vietnam to N Korea

23-Oct-2018 Intellasia | Hanoi Times | 6:00 AM Print This Post

In response to Hanoitimes’ request for comment, a spokesperson of Samsung Electronics Vietnam said the company “does not comment on rumours and personal speculation.”

Samsung Electronics Vietnam has said the rumours saying North Korea could replace Vietnam as Samsung’s main production centre for smartphones and displays are “personal speculation”.

You Seung-min, chief strategist at Samsung Securities earlier this week, was quoted by Nikkei Asian Review as saying that North Korea is a good candidate for Samsung Electronics to set up production lines because it can offer cheap labour, has no language barrier and has the same time zone.

Nikkei also cited analysts as saying the Kaesong complex is attractive to South Korean companies because of its low rent, cheap labour costs and a large pool of able workers who speak the same language as their counterparts in the South.

According to Hana Financial Investment, a South Korean brokerage, minimum monthly wages for factory workers in the complex in 2014 were just $63.8, lower than $95.8 in Vietnam’s HCM City and $194 in China’s Qingdao. In South Korea’s Ansan, the figure was more than $800.

“North Korea could draw investments from the international community and South Korea in the long-term, if it benchmarks Vietnam’s success model,” You Seung-min said.

In response to Hanoitimes’ request for comment, a spokesperson of Samsung Vietnam Complex said the company “does not comment on rumours and personal speculation.”

Samsung Securities is just a subsidiary of South Korean conglomerate Samsung Group and is independent of Samsung Electronics. In addition, You Seung-min is an economist at Samsung Securities and is not authorised to speak on Samsung Electronics’ investment plans.

Samsung has invested a total of $17.36 billion in Vietnam over the past decade, and is employing over 160,000 workers, 400 times its workforce in the Southeast Asian country in 2008.

Samsung Electronics has some 110,000 employees in its two complexes in Bac Ninh and Thai Nguyen provinces in North Vietnam, accounting for one third of the giant’s workforce globally. These two factories are producing more than a half of smartphones and tables manufactured by Samsung Electronics worldwide.

Samsung shipped $54.4 billion worth of “Made-in-Vietnam” products last year, making one fourth of the country’s total export turnover, and the exports are set to reach $58 billion this year.

http://www.hanoitimes.vn/investment/2018/10/81E0CE27/samsung-refutes-rumours-on-shifting-production-from-vietnam-to-n-korea/

 


Category: Business, Vietnam

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