The former capital of Vietnam, Ho Chi Minh City, is set to re-enter quarantine due to an increase in coronary heart disease. A nationwide shutdown could lead to irreparable financial damage to Samsung and damage factory production.
The quarantine conditions and the problems of the workers of Samsung Vietnam factory to be present at work, a big blow to the company’s production.
Samsung Vietnam, located in Saigon Hi-Tech Park, manufactures smart TVs and other home appliances. The plant employs more than 7,000 people and its products are sold in various markets including the United States, Europe and Southeast Asia. Under quarantine conditions, the plant will face many problems.
Until now, Samsung has been able to cope with quarantine conditions and restrictions by accommodating workers in the factory or surrounding dormitories. But even in these circumstances, the factory was operating at only 30 to 40 percent of its capacity due to corona restrictions.
With each factory shutdown, Samsung loses tens of millions of dollars. Samsung apparently intends to negotiate these issues with the Vietnamese authorities. In addition to problems with corona quarantine conditions, companies such as Samsung are struggling with other problems, including global chip shortages. A nationwide closure in Vietnam and new quarantine conditions could create difficult days for Samsung’s production plant in the region.
Of course, these production problems do not currently affect the production status of Samsung smartphones, and from this point of view, Samsung will not face any problems. In addition, Samsung has factories in other countries, including India, through which it can partially close the production deficit in the event of a serious problem in Vietnam.