Published in Mobiles

Vietnam suffering supply chain problems

by on24 February 2020

Coronavirus epidemic could delay new Samsung phones

Vietnam’s manufacturing sector is suffering supply chain problems caused by the coronavirus epidemic, which may delay the production of Samsung’s new phones, the Ministry of Industry and Trade warned.

Car, electronics and phone manufacturers are experiencing difficulty in acquiring supplies and materials due to disruptions from the virus,” the ministry’s Industry Agency said in an emailed statement.

“Vietnam relies much on China for materials and equipment, which makes the country become vulnerable when such an outbreak happens”, it said.

Vietnam eased some health-related restrictions on cross-border trade to prop up economic activity, but some strict measures are still in place.

Samsung, Vietnam’s largest single foreign investor, is an example, the agency said. The epidemic would have an impact on the production of two new phone models as most of the components are sourced from China.

“Samsung is considering using sea or air transport to import needed components but it would lift up the cost and would hardly meet the production schedule and demand”, the agency said.

Samsung said it was “making our best effort to minimize the impact on our operations”.

Although the ministry has not reported any plants being shut down because of the virus, the biggest problems facing car and electronics manufacturers are securing alternative materials and goods, along with inventory management.


Last modified on 24 February 2020
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