Samsung running from China’s high prices, sets up shop in Vietnam to save on labor costs

BY Stefan Constantinescu

Published 13 Dec 2013

According to Bloomberg, wages in Vietnam are one third of those in China. That’s why Samsung, as well as several other high profile companies, either already have or are planning to set up shop in the country. Samsung is building a phone factory there that’s going to start pumping out devices in February 2014. Once everything is fully ramped up in 2015, said factory is expected to produce 120 million smartphones a year. To put that number into some perspective, Samsung is estimated to ship 290 million phones this year alone.

Who else is in Vietnam? Intel’s been there since 2010. Nokia’s Asha phones are assembled there as well. And LG is currently in the process of spending $1.5 billion on a 400,000 square foot plant that will make televisions and household appliances.

Is Apple making anything in Vietnam? I don’t actually know. Some of the components Apple use may be built in Vietnam, but as for the actual assembly … that requires some sophisticated machinery that’s only available in China and Taiwan.

Should you trust a Samsung phone made in Vietnam? A similar question popped up when Nokia started making phones in China. People held this firm belief that any Nokia phone not built in Finland was a piece of garbage. That’s obviously not true, and I’m sure Samsung’s quality control department will be just as stringent in Vietnam as they are in other countries.

That being said, I do have a loose home button on my Note 3.