Companies like Xiaomi, Samsung and Apple have shifted production
to Vietnam to boost production amid ongoing supply chain issues due to the
COVID-19 pandemic. Xiaomi's plant has reportedly produced its first batch of
handsets, which will be exported to countries like Malaysia and Thailand.
According to a report by Global Times, the first batch of
smartphones produced at Xiaomi's new production plant in Vietnam has already
been delivered. The company has now shifted its attention to Vietnam.
The new building, which is 200,000 square metres in size and
represents an investment of $80 million, is situated in North Vietnam. The
production is trusted to DBG Technology, situated in Hong Kong.
The objective of Xiaomi is to use its new plant in Vietnam
as a centre for exports into nearby Southeast Asian nations like Malaysia and
Thailand. With a market share of 22 percent in Vietnam, Xiaomi is only
surpassed by Samsung (34 percent), as reported by GSM Arena.
Other Xiaomi manufacturing facilities are situated in China
and India.
Xiaomi is not the only company looking to boost production
outside of China. Last month, Apple began moving some iPad production to
Vietnam due to ongoing supply chain disruptions — the first time that the
Cupertino company shifted manufacturing of its iPad models out of China.
One of the major reasons for Apple to move its iPad
manufacturing to Vietnam is to overcome the restrictions that emerged due to
strict COVID-19 lockdowns in Shanghai and other cities of the country.
Over the past decade, South Korean smartphone giant Samsung
has already shifted much of its smartphone production to Vietnam, where it
makes over 50 percent of its phones and has so far seen little production
disruption. Its Gumi factory in South Korea — which was briefly shut down
during the pandemic in 2020 — makes up for a small portion of its total output.
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