Xiaomi begins manufacturing smartphones in Vietnam


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Xiaomi has recently reportedly delivered the first production of Vietnamese -made products to improve delivery efficiency in the Southeast Asian market and reduce shipping costs .

Delivery to Southeast Asian countries including Vietnam

A spokeswoman for Xiaomi told Global Times that shipping costs in Southeast Asia have risen due to the COVID-19 epidemic, and logistics costs have been on the rise in recent years, so the company has teamed up with partners. It is said that the assembly has started local production .
 
According to media reports, Xiaomi smartphones manufactured in Vietnam will be delivered not only in Vietnam but also to other Southeast Asian countries such as Malaysia and Thailand .

Increasingly close industrial cooperation between China and ASEAN

By setting up production lines in Vietnam and other Southeast Asian markets, we can improve both the cost and delivery efficiency of Chinese smartphone makers from the potential market demand and relatively low labor costs in these regions. Liszt Ma Zihua commented.
 
With the sophistication of China’s industry, labor-intensive industries such as the manufacturing industry of shoes, clothes and furniture have begun to move to countries such as Vietnam.
 
China’s major consumer electronics maker TCL and display maker BOE also have production bases in Southeast Asian countries, and China’s major solar panel maker Trina Solar has already established a production line in Vietnam in 2017.


Vietnam’s production underwriting capacity is currently limited

Although Vietnam has advantages in terms of labor resources and location, it relies on China to supply some core equipment and parts, and its ability to undertake production from China is currently limited. Mr. says.
 
According to him, the transfer of production from China to Vietnam and other Southeast Asian countries is a spillover effect due to the expansion of China’s industrial chain, which means that the supply chain network centered on China has grown to some extent. That is.
 
 
Source: Global Times via GSMArena

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