Amid the corona virus outbreak, how does Samsung maintain the operation of a factory of 60,000 workers in Vietnam?

The work at Samsung Electronics’ largest factory in Vietnam has been restored right after the Tet holiday, and they are starting to prepare to mass-produce the first S20 high-end phones equipped with 5G networks. introduced in the US today, is expected to hit shelves on 6/3. However, Samsung may still face supply chain risks in the context of a corona virus outbreak.

Recently, Samsung also issued a warning that the company’s revenue in Vietnam could be reduced by 50% in 2020 if the customs clearance issue is not resolved. Currently, Samsung’s factories in Vietnam still need a few components and materials for manufacturing from China.

Since the corona virus outbreak in Wuhan, Vietnam and China have been cooperating to solve the problem of congestion at the border. However, hundreds of containers of materials are still being congested at Huu Nghi border gate in Lang Son.

A 2-week mandatory restraining order applies to all drivers who travel between China and Vietnam.

“I had to spend another week at the border to wait for shipment. I do not want to be isolated for another 14 days,” a driver said.

Samsung’s factory in Vietnam still reopens after the New Year holiday on January 30, though rivals such as Apple, Google and Huawei all witnessed supply chain disruptions in China because workers were able to work here. extend holidays due to risk of disease spread.

Samsung operates 3 factories in Vietnam and the branch in Thai Nguyen is the largest with nearly 60,000 employees.

Samsung employees are checked for body temperature at the factory entrance.

“Thai Nguyen Complex is the largest smartphone factory of Samsung and the equipment manufactured here sells globally,” a company leader said.

“The factory is now operating normally,” an employee interviewed with Nikkei newspaper.

However, the woman said that she felt that leaders were still very wary of the possibility of spreading the disease.

“Thousands of us work together under one roof. Leaders still remind us of the importance of taking measures to protect ourselves during working hours like washing our hands and wearing masks.”

Because of the corona virus outbreak, this year was the exception when Samsung canceled the event to welcome employees back after Tet holiday.

On the surface, production was normal, but another worker at Thai Nguyen factory said that the factory was under great pressure.

“At present, hundreds of my colleagues are at home at the request of the company. These people come back to work from the provinces bordering China and they say they have direct contact with the Chinese. during the Lunar New Year. The company still pays these workers full wages. ”

An employee at Samsung Bac Ninh factory said that some of their colleagues were also isolated. Leaders added additional protections such as checking workers’ health at the factory entrance.

Samsung has invested more than US $ 17.3 billion in Vietnam. The Thai Nguyen factory alone achieved export value of US $ 24 billion in 2018.

Samsung announced revenue of US $ 62.3 billion in Vietnam in 2018, accounting for 28% of the country’s GDP.

Vietnam is currently the company’s largest overseas production base, which produces high-end devices including the Galaxy Fold. Sales in Vietnam accounted for 30% of Samsung’s total revenue in 2018.