Nikkei Asian Review: Samsung Electronics looks to shift production to VN

Samsung Electronics ends personal computer production in China as it looks to shift production to Viet Nam to cut costs and remain competitive in the PC business, according to the Nikkei Asian Review.

The tech group of the Republic of Korea looks to shift production to an existing factory in Viet Nam. 

Samsung Electronics Suzhou Computer, the unit that runs the Chinese plant, was established in 2002 as a PC assembly center. The computers made at the factory were sold mainly in the Republic of Korea, North America and China.

According to the article, the Global PC shipments inched up 0.6% last year to 261.23 million units, research firm Gartner said. 

In general-use PCs built with common parts, market share is directly linked to earnings. Japanese makers have left the business as top players dominate the market. Samsung will continue to make PCs, but the company will cut labor and other costs by relocating production.

Samsung once operated three smartphone factories in China, but the group shut down all Chinese production at the end of 2019. The capacity has been transferred to Samsung's Vietnamese facilities or delegated to contract manufacturers.

The Japan External Trade Organization (JETRO) has released a list of 30 Japanese firms that are poised to receive subsidies from its government to move production facilities from China to Southeast Asian countries, with half of the list eyeing Viet Nam as a possible destination, local media reported.

Nine of the companies are small and medium enterprises (SMEs) and six of large scale.

The majority of Japanese firms looking to move to Viet Nam are in the fields of medical equipment, in addition to those producing semiconductors, phones and parts, and air conditioners, among others.

Among the list, Hoya Corporation, which manufactures hard-drive parts, is set to move to Viet Nam and Laos, while Shin-Etsu Chemical will shift production of rare-earth magnets to Viet Nam.

JETRO said the financial support would range from US$900,000 – US$46.5 million to partly cover the required expenses of Japanese firms in expanding operation.

By Thuy Dung