It once made 350 billion yuan a year in China, but now it has closed all Chinese factories and invested 100 billion yuan in Vietnam

As we all know, China is the “world’s first factory” and is in a leading position in the world’s manufacturing industry. However, with the rapid growth of China’s economy, China’s labor costs and other factors have also increased. Therefore, in recent years, many foreign-funded enterprises have left China and moved to Vietnam, Cambodia, Laos and other Southeast Asian countries with low labor costs. After the profit space is seriously compressed, they can only seek the country with lower labor cost to develop. Among them, Samsung, which received nearly 350 billion revenue in China in 2018, will gradually move its factories in China to Vietnam. < p > < p > in 2002, Samsung mobile phones entered the Chinese market. After the decline of Nokia and other brands, Samsung quickly occupied a certain position and became the dominant player in the Android mobile phone field. For many years, Samsung has been China’s best-selling mobile phone brand, very popular with Chinese people. However, the rise of apple and Huawei later affected Samsung’s position, while Xiaomi and other brands had a certain impact on Samsung’s medium and low-end mobile phones by virtue of their cost performance. In addition, Samsung’s mobile phone “explosion door” incident occurred, Samsung’s position in China has plummeted. In recent years, Samsung’s factories in China have been constantly closed. In addition to considering labor costs, it must also be related to Samsung’s poor sales in China. < p > < p > in 2018, Samsung’s annual revenue in China was about 350 billion yuan, but now Samsung Group’s mobile phone sales are gradually declining, even accounting for only 1% of China’s mobile phone market. Samsung closed its last mobile phone factory in China in 2019, and its last computer factory in China this year. Today, Samsung has shifted its focus to Vietnam, where labor costs are lower, and Vietnam will become Samsung’s largest production base in the future. According to reports, Samsung has set up the largest factory in Vietnam with a total investment of US $17.3 billion. It can be seen that Samsung attaches great importance to Vietnam’s production base. Samsung’s move will certainly drive the development of Vietnam’s local economy and bring more employment opportunities. The departure of Samsung factory has both advantages and disadvantages for China. Although it will take away more employment opportunities, it can also promote China’s industrial upgrading and promote China’s development from labor-intensive enterprises to science and technology and knowledge intensive enterprises. < / P > < p > it is reported that Samsung began to transfer its factory to Vietnam since 2008, and now Vietnam has eight Samsung production bases. In addition to Samsung, UNIQLO, Foxconn and other giant production plants are gradually transferred to Southeast Asian countries. However, in the view of insiders, Samsung’s exit is actually an unwise choice because Vietnam’s labor costs are soaring and the layout of its basic industrial chain is not perfect. From this point of view, Samsung is actually a bit of a loss. What do you think of SamSung group? What do you think of Samsung mobile phone? With a lot of foreign investment, Vietnam’s labor price is also rising, which may not be worth the loss in the long run. Continue ReadingYueshang group has become the third social e-commerce service platform listed in China after being gathered in pinduoduo