Last updated: 16:26 - May 16, 2007
Samsung looks to offshore production into Vietnam http://www.nhandan.com.vn/english/business/160507/business_s.htm
Samsung Electronics, a mobile phone giant in the Republic of Korea (RoK), is poised to move the bulk of its cell phone production offshore and into Vietnam, the Chosun Ilbo newspaper reported.
The move follows a shift in strategy for the company as it looks to shed its reliance on the Gumi plant in northern Gyeongsang province, to a global sourcing model. Falling inline with the new strategy, Samsung planned to start construction of a larger facility in Vietnam by the fourth quarter of this year.
Last year, the Gumi Plant produced 70 million phones out of Samsung's total output of 130 million, while the Vietnam facility is expected to produce 100 million handsets per year.
Market analysts say the move mirrors the sentiments of many of the country's largest industrial groups regarding the high costs of production in the RoK. Vietnam is said to be a rapidly emerging manufacturing market with greater numbers of component companies expected to follow in the footsteps of Samsung Electronics and build plants in the South East Asian country, the paper concluded. (VNA)
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