COVID-19 Affecting South Korean Companies in Vietnam

The capacity utilization of Samsung Electronics’ consumer electronics plant in Ho Chi Minh City, Vietnam recently fell below 70 percent. At present, Samsung Electronics’ smartphone production in Vietnam accounts for half of its total smartphone production. Last year, Samsung Electronics Vietnam’s sales amounted to 54.5 trillion won.

This month, roads in and around the city are considerably blocked to the extent of hindering material and component procurement. Besides, lots of manufacturing facilities are idle due to the spread of COVID-19.

The spread in Vietnam is affecting LG Electronics and many other South Korean IT companies in that country as well. LG Electronics is manufacturing household appliances and automotive electronics components in Haiphong. The spread of COVID-19 is affecting both Samsung Electronics and LG Electronics and smaller companies working with them.

This month, the spread has occurred mainly in the southern region of the country, including Dong Nai Province and Ho Chi Minh City. The number of new infections in Vietnam amounted to 7,623 on Aug. 4 alone. The lockdown there is until the middle of this month. The capacity utilization of facilities there is currently about 60 percent on average. Samsung Electronics’ consumer electronics plant in Ho Chi Minh City recorded 6.2 trillion won in sales last year.