Vietnam was the promised land. not longer
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Samsung, as well as suppliers to Apple and Google, have moved parts of their activities to Vietnam as lockdowns continue in China. With demand from the West faltering, Vietnam was no longer the promised land.
Why is this important?
Vietnam has been considered an alternative to China due to its lower labor costs, favorable geographic location, emerging markets, multiple trade agreements, and political stability. But despite its potential to host high-tech factories, the country is not resilient enough to weather global demand shocks.in the news. Major technology companies, including Samsung, have laid off more than 45,000 workers in the country due to slowing demand in Western markets. Others are working fewer hours for lower wages as companies cut back on production.
Factory World Vietnam is in trouble
Zoom in. Samsung employs about 100,000 people in Vietnam. The company has been responsible for the past year 9 percent of total export earnings from the country.
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