When most of the electronics manufacturers are depending heavily on Chinese production facilities, Samsung is planning to move it’s plants from China to Vietnam to further reduce production costs.
Bloomberg reports the company is relocating to Vietnam “to secure even lower wages and defend profit margins as growth in sales of high-end handsets slows.”
The new plant in Vietnam will cost $2 billion and it will reach full production by 2015. 40% of all of Samsung Galaxy smartphones will be made in this new facility.
Lee Jung Soon of the Korean Trade-Investment Promotion Agencytold Bloomberg that “’the handset business is all about assembling well-sourced components’” and Vietnam’s manpower can handle the task. Another plus for the move is that Samsung is much closer to Vietnam in terms of its supply chain.
