Samsung Vietnam denies transferring part of smartphone production from Vietnam to India

The Economic Times reported that the Samsung Group could shift part of its smartphone production from Vietnam and other countries to India.

Samsung is planning to manufacture more than $ 40 billion in devices in the country and is reportedly working on finalizing its plans.

A person familiar with the matter told The Economic Times that the company is likely to diversify its production lines to produce smartphones under a joint manufacturing incentive (PLI) program. The move will have an impact on existing operations in other countries including Vietnam, as mentioned in a report in The Economic Times.

According to this daily, Samsung has submitted to the Government of India plans to produce smartphones worth 40 billion USD over the next 5 years under the PLI plan. Phones that will have a factory price of $ 200 or less will account for more than $ 25 billion. Most phones on this list will be exported, an official told the daily.

Vietnam is one of the largest smartphone exporters, after China. Samsung makes nearly 50% of its phones in Vietnam. Due to the high labor costs in Korea, the country is in the process of shrinking production. Samsung also has facilities in Brazil and Indonesia.

If the plan of Samsung is implemented, it will together with Apple move part of production of its important products to India.

During a recent press conference, Communications and IT Minister Ravi Shankar Prasad said that the PLI plan has received positive feedback from domestic and international electronics component manufacturers.

“A total of 22 companies have applied for registration under the PLI Scheme. The condition for international mobile phone manufacturing companies is to produce mobile phones worth Rs 15,000 or more, while not having any. Any such standards for domestic companies. We welcome Apple and Samsung to India. Domestic companies – Lava, Micromax, Padget Electronics, Sojo – are welcome to go ahead, “said the Minister.

However, Samsung Vietnam has denied this information. The company said that information about Samsung may move part of its smartphone production from Vietnam to India is not true. Currently, Samsung’s phone manufacturing plants in Bac Ninh and Thai Nguyen are operating normally without any connection to the Indian factory’s adjustment of production output. In addition, Samsung Vietnam has always maintained an important role as the group’s global production base.