Samsung moved its factory to Vietnam because of war, the bustling Chinese city suddenly turned into a ‘ghost city’.

In October 2019, Samsung officially shut down its last phone factory in Huizhou, Guangdong, China. With the transfer of production lines to Vietnam and India, this step marks the complete withdrawal of Samsung from China to avoid the influence of the US-China War.

But for the people of Huizhou, Samsung's decision to flee was a real shock, especially for small businesses here, according to SCMP.

"Before the Samsung factory moved, our revenue could reach 60,000 yuan (US $ 8,500) or 70,000 yuan (US $ 9,900) a month. Most guests are Samsung employees and suppliers. But now we can only make a few hundred yuan a day, the restaurant is only two or three tables a night, "said Li Bing, owner of a restaurant in Huizhou.

Just a few years ago, Ms. Li's restaurant and many other Huizhou residents benefited from thousands of workers living near the Samsung factory there. Samsung's 120,000-square-meter smartphone and electronics manufacturing facility has been supporting many other local businesses for nearly three decades.

However, the situation suddenly unexpectedly deteriorated. In the absence of any new manufacturer replacing Samsung, at least 60% of local businesses had to close. The number of remaining enterprises soon falls into a similar situation if the situation does not improve, according to SCMP.

"Samsung is the world's leading manufacturing enterprise. Samsung's Huizhou factory has helped create the entire supply chain ecosystem in Guangdong and neighboring provinces over the past 20 years," said Liu Kaiming, head of The head of the Contemporary Observatory, which monitors working conditions at hundreds of factories in China, said.

" At least 100 factories in Guangdong will close. They cannot maintain operations without the Samsung factory in Huizhou, let alone the small shops and restaurants in the neighborhood. "

Workers work in moderation because there are no more Samsung orders

100km from Huizhou, people living in the town of Chang'an in the city of Dongguan also felt the negative effects of Samsung's 'escape'. This is where Janus Intelligent Group, a Chinese robotics assembly company, has located its factory to supply Samsung.

Last year, Janus's revenue plunged 14.25% year-on-year, equivalent to $ 405 million in net losses. The suspension of Samsung orders from the fourth quarter of 2018 has caused this business finance to be in serious deficit due to too few orders. As a result, in September 2019, Janus sold most of its equity in a factory in Dongguan, a city near Huizhou, to another company.

The company also forced layoffs and thousands of migrant workers. For the rest of the workers, some are required to take a three-month leave, while others are only scheduled to work one or two days a week, several hours a day, all just to maintain the production line.

" We feel that the factory is implementing a strategy to force workers to quit their jobs instead of being laid off. They allow professionals to take three-month leave with an income of less than 2,000 yuan (equivalent to 6.5 yuan). In the meantime, workers are also required to take one or two days off work alternating days so that we cannot maintain a normal income and are forced to take leave, "said Liu Fang. from Henan province has been working in the factory for more than 5 years answering SCMP.

Just a few years ago, the number of employees at Janus sometimes amounted to more than 10,000 when the company continuously received orders from the Samsung factory in Huizhou. The Janus Company then even rented more than 40 seven-storey buildings near the company to build employees' dormitories. After dismissing, the number of employees working at the factory was only 3,000 in moderation. The number of dormitory buildings in Dong Guan also halved, to only 20 buildings.

Without Samsung workers, Huizhou becomes a ghost town

Two months after Samsung left Huizhou, the government is still struggling to find a way to deal with the land that used to be the factory site, in the context that people here still expect the new manufacturer will soon take its place. Samsung.

"Local spending is falling to an alarmingly low level," said Li Hua, owner of a convenience store. "Our current turnover has dropped by at least 80% compared to August 2019 due to the large number of workers leaving in September 2019."

The Huizhou plant began operations in August 1992, four days before South Korea established diplomatic relations with China, opening the door for Samsung to sign a joint venture contract with local authorities. During operation, Samsung's Huizhou factory produced the latest and most popular consumer electronics, from stereo in the 1990s, MP3 player in the early 2000s and Smart phones since 2007.

"There are about 100 six- to seven-storey buildings, about 1,000 square meters of floor area, of the Jinxinda complex. Most are leased to Samsung workers," said Huang Fumin, sales director of Real Estate Brokerage. Huizhou Star production said.

"Immediately after the closing of the Samsung factory, housing prices immediately fell from 4.8 million yuan (US $ 680,000) in August to 3.8 million yuan (US $ 540,000), but there was no which investors are interested in this price, "said Mr. Huang.

"In the past these buildings were full of Samsung workers and nearby factories. No matter how late, young workers are still here, having dinner at restaurants and playing online games in cafes. internet. Now it looks like a ghost town at night because most houses are uninhabited. "

According to SCMP, the business operations of Ms. Li's restaurant, as well as the businesses near the factory, are facing two options: Finding a solution to overcome or be forced to close.

"We hope the local government can invite a factory of around 2,000 to 3,000 workers as soon as possible," Li said. "Only when there are workers, can we and the locals continue our business to sustain our livelihoods."

Unlike Ms. Li, another nearby store owner only dared to hope the new factory would have about 1,000 to 2,000 workers. "Our business is dying and we cannot wait any longer," the owner said pityingly.

Refer to SCMP