JavaScript is off. Please enable to view full site.

Vietnam reports supply chain issues from virus, says may hit Samsung output

Friday, February 21, 2020, 16:36 GMT+7
Vietnam reports supply chain issues from virus, says may hit Samsung output
Container trucks are seen while waiting for cross the border at Huu Nghi border gate connecting with China, in Lang Son province, Vietnam February 20, 2020. Photo: Reuters

HANOI -- Vietnam’s manufacturing sector is suffering supply chain issues caused by the coronavirus epidemic, which may lead to a delay in production of Samsung Electronics’ new phones, the Ministry of Industry and Trade told Reuters on Friday.

“Car, electronics and phone manufacturers are experiencing difficulty in acquiring supplies and materials due to disruptions from the virus,” the ministry said in an emailed statement.

“Vietnam relies much on China for materials and equipment, which makes the country become vulnerable when such outbreak happens,” it added.

Vietnam on Thursday eased some health-related restrictions on cross-border trade to prop up economic activity, but some strict measures are still in place.

Samsung, Vietnam’s largest single foreign investor, is an example, the ministry added. The epidemic would have an impact on its production of two new phone models as most of the components are sourced from China.

“Samsung is considering using sea or air transport to import needed components but it would lift up the cost and would hardly meet the production schedule and demand,” it said.

Although the ministry hasn’t recorded any plants being shut down because of the virus, car and electronics manufacturers’ biggest challenges are securing alternative materials and goods, along with inventory management.

“If the epidemic is not contained in the next 1-1.5 months, we will run out of inventory. Domestic TV’s and phone’s output will sharply decline,” said the trade ministry, citing Vietnam Electronics Business Association’s report.

The Vietnamese government said it would stick to this year’s economic growth target of 6.8% and take steps to ease the impact of the outbreak.

The Ministry of Health said on Friday that 15 out of 16 confirmed coronavirus cases in the country have now been recovered, while 28 suspected cases are being quarantined at local hospitals.

Reuters

More

Read more

;

Photos

VIDEOS

Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news