Samsung Vietnam fears 11 percent drop in export
Samsung Vietnam fears 11 percent drop in export
Samsung Vietnam expects exports to fall by $5.8 billion, or 11 percent, to $45.5 billion this year as a result of the coronavirus pandemic.
Employees walk to work at the Samsung factory in northern Thai Nguyen Province. Photo by Reuters/Kham.
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The company attributed it to falling demand in the U.S and the E.U., according to a recent report by the Ministry of Industry and Trade.
The E.U. accounts for 24 percent of Vietnam’s smartphones exports, and the U.S. for 17 percent of computer and electronics exports, and together for half of Samsung’s exports.
U.S. market research firm Strategy Analytics estimated global smartphone shipments could fall by 10 percent this year due to the epidemic in the U.S. and the E.U.
The ministry said Vietnam’s smartphone and electronics sectors also struggled to source materials and parts from China due to the major outbreak there.
The supply chain has partly been restored, but manufacturers still have trouble importing parts from China due to slower border trade activities because of safety measures.
Vietnam’s exports rose 8.4 percent last year to $264 billion, a third made up of smartphones, computers and electronics.
