70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Real estate
Samsung Vietnam trims export target by US$5.8 billion on Covid-19
Ngoc Thuy 17:12, 2020/04/03
Domestic electronic production could be among industrial sectors that face major challenges in the coming quarters as major export markets are struggling with the pandemic.

Samsung Vietnam expected its export turnover in 2020 to reach US$45.5 billion, down US$5.8 billion against the firm’s export revenue last year, due to the growing impacts of the Covid-19 pandemic on the global electronic industry.

 Illustrative photo. 

The information was revealed in a report of the Ministry of Industry and Trade (MoIT) sent to Prime Minister Nguyen Xuan Phuc, local media reported.

The report suggested the domestic electronic production could be among industrial sectors that face major challenges in the coming quarters, as the pandemic may lead to a decline in demand for electronic products in the US and European markets.

At present, the US and Europe make up 17% and 24% of Vietnam’s shipments of phones and parts, respectively, while the respective rates for electronic and accessories are 17% and 14%.

Additionally, the US and Europe are importing over 50% of products of Samsung Electronics Vietnam, of which the US market accounts for 20% and Europe 30%.

Strategy Analytics Inc., a market research firm, forecast global revenue from smartphone sales in 2020 could decline by 10% as the Covid-19 pandemic is spreading in the US and Europe, in turn severely affecting Vietnam’s electronic industry.

The Vietnam Electronic Industries Association (VEIA) expected a plunge in the number of long-term contracts and orders for local electronic manufacturers.

According to the MoIT, local companies faced a shortage of input materials for production since the Covid-19 outbreak. Recently, imports of materials from China have partially recovered, but the customs clearance process remains slow due to anti-virus measures.

Firms are struggling to find alternative sources other than China, especially in terms of price and quick delivery, stated the MoIT.

RELATED NEWS
TAG: Vietnam Samsung covid-19 coronavirus nCoV pandemic China South Korea smartphones
Other news
16:27, 2024/03/28
Vietnam real estate market in 2024 shows signs of recovery
In 2024, the housing market shows more positive signs than in 2023, but there will be differences in the timing of the recovery across segments.