Bac Ninh real estate report point in June, 2019
The main reason why foreign companies left China is to reduce production costs, but according to Russian experts, there are many other reasons. That is the reason related to politics and the extreme patriotism of the Chinese people that have caused many large companies of Korea (Samsung), Japan (Toyota, Nissan) and the US to leave China.
The number of workers reduced from 9.000 workers to 4.000 workers.
BBC quoted Samsung spokesperson as saying that another smart phone factory of Samsung will be built in Thai Nguyen with a total investment up to 3 billion USD.
Not only Samsung, other handset manufacturers of Intel, LG and Panasonic have also expanded their production in Vietnam over the past few years. The BBC says these are signs that the technology firms’ move away from China.
The current number of workers at Samsung Bac Ninh factory is over 150,000 people.
In the latest announcement, Samsung said it would cut its operations in China and focus on manufacturing in Vietnamese and Indian factories. It is known that the company encountered too much competition from domestic manufacturers, did not make profits in this market, so it had to come to the decision above.
It has long been thought that China’s cheap and abundant labor force are the main reasons for making Samsung the world’s largest phone manufacturer. However, in the context of the decline in the high-end smartphone market, Samsung will soon move to Vietnam, where wages are lower than China in order to preserve the profit rate.
According to information from Korean news website Thelec, Samsung is planning to build a smartphone factory in Vietnam. If the proposal is approved, Samsung Electronics will have a total of 3 smartphone factories in Vietnam.
Samsung factory in Bac Ninh, Vietnam (SEV) currently has more than 40,000 employees, Samsung Thai Nguyen (SEVT) currently has more than 70,000 employees.
Industrial Park and Urban VSIP Bac Ninh has a total planning area of 700 ha, total registered capital of 80 million USD. In operation from December 2007, VSIP Bac Ninh has so far attracted 76 projects, with total registered investment capital of 1.45 billion USD and 2,149 billion VND.
The number of employees is up to 210,000 people.
Located in the northern key economic region, on the border between Ha Noi and Bac Ninh, VSIP Bac Ninh has a total area of 700 ha. In which, 500ha to develop the Industrial Park with advanced production technology and 200ha to develop the Commercial and Residential Area with commercial projects, supermarkets, schools, offices, sports areas and houses …
The number of employees working at VSIP Industrial Park is 210,000 people.