Log in
Log in
Or log in with
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. Korea, republic of
  4. Korea Stock Exchange
  5. Samsung Electronics Co., Ltd.
  6. News
  7. Summary
    A005930   KR7005930003


End-of-day quote Korea Stock Exchange  -  2022-09-26
54200.00 KRW   +0.56%
06:19aUBS Adjusts Samsung Electronics' Price Target to 77,000 Won From 81,000 Won, Keeps at Buy
03:26aS.Korean shares, won tumble on recession fears
03:18aNanoco Faces Further Delay in Intellectual Property Dispute Trial With Samsung
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Exclusive-Samsung workers in Vietnam bear brunt of slowdown in global demand for electronics

08/04/2022 | 02:22am EDT
Employees make their way to work at the Samsung factory in Thai Nguyen province, north of Hanoi, Vietnam

THAI NGUYEN, Vietnam (Reuters) - Samsung Electronics Co Ltd has scaled back production at its massive smartphone plant in Vietnam, employees say, as retailers and warehouses grapple with rising inventory amid a global fall in consumer spending.

America's largest warehouse market is full and major U.S. retailers such as Best Buy and Target Corp warn of slowing sales as shoppers tighten their belts after early COVID-era spending binges.

The effect is acutely felt in Vietnam's northern province of Thai Nguyen, one of Samsung's two mobile manufacturing bases in the country where the world's largest smartphone vendor churns out half of its phone output, according to the Vietnam government.

Graphic: US business inventories climb on restocking, slower consumer spending -

Samsung, which shipped around 270 million smartphones in 2021, says the campus has the capacity to make around 100 million devices a year, according to its website.

"We are going to work just three days per week, some lines are adjusting to a four-day workweek instead of six before, and of course no overtime is needed," Pham Thi Thuong, a 28-year-old worker at the plant told Reuters.

    "Business activities were even more robust during this time last year when the COVID-19 outbreak was at its peak. It's so tepid now."

Reuters could not immediately establish whether Samsung is shifting production to other manufacturing bases to make up for reduced output from the Vietnamese factory. The company also makes phones in South Korea and India.

Samsung told Reuters it has not discussed reducing its annual production target in Vietnam.

The South Korean tech giant is relatively optimistic about smartphone demand in the second half, saying on its earnings call last week that supply disruptions had mostly been resolved and that demand would either stay flat or even see single-digit growth.

It is aiming for foldable phone sales to surpass that of its past flagship smartphone, the Galaxy Note, in the second half. It is expected to unveil its latest foldables on Aug. 10.

But a dozen workers interviewed by Reuters outside the factory almost all said business is not good.

Thuong and her friends who have been working for Samsung for around five years said they had never seen deeper production cuts.

    "Of course there is a low season every year, often around June-July, but low means no OT (overtime), not workday cuts like this," Thuong said.

She said managers had told workers inventories were high and there were not many new orders.

Research firm Gartner expects global smartphone shipments to decline by 6% this year due to consumer spending cuts and a sharp sales drop in China.


Samsung is Vietnam's biggest foreign investor and exporter, with six factories across the country, from northern industrial hubs Thai Nguyen and Bac Ninh where most phones and parts are manufactured, to Ho Chi Minh City's plant making fridges and washing machines.

The South Korean company has poured $18 billion into Vietnam, powering the country's economic growth. Samsung alone contributes one fifth of Vietnam's total exports.

Its arrival nearly a decade ago in Thai Nguyen, about 65 km (40 miles) from the capital Hanoi, transformed the area from a sleepy farming district into a sprawling industrial hub that now also manufactures phones for Chinese brands including Xiaomi Corp.

Generous benefits including subsidised or free meals and accommodation have lured tens of thousands of young workers to the region, but reduced workhours have now left many feeling the pinch.

"My salary was cut by half last month because I just worked four days and spent the remaining week doing nothing," said worker Nguyen Thi Tuoi.

Job cuts are on some workers' minds but so far none have been announced.

"I don't think there will be job cuts, just some working hour cuts to suit the current global situation," said one worker, declining to be named because she did not want to risk her team leader role.

"I do hope that the current cut will not last long and we will soon be back to normal pace."

(Additional reporting by Khanh Vu in Hanoi and Joyce Lee in Seoul; Editing by Miyoung Kim and Stephen Coates)

By Phuong Nguyen

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
BEST BUY CO., INC. 0.14% 65.41 Delayed Quote.-35.62%
SAMSUNG ELECTRONICS CO., LTD. 0.56% 54200 End-of-day quote.-30.78%
TARGET CORPORATION -0.16% 148.47 Delayed Quote.-35.75%
XIAOMI CORPORATION -3.72% 9.33 Delayed Quote.-48.73%
06:19aUBS Adjusts Samsung Electronics' Price Target to 77,000 Won From 81,000 Won, Keeps at B..
03:26aS.Korean shares, won tumble on recession fears
03:18aNanoco Faces Further Delay in Intellectual Property Dispute Trial With Samsung
03:13aVietnam tech firm FPT produces country's first semiconductor chips
09/26Amazon to Launch Prime Early Access Sale in October; Shares Rise
09/26Amazon to Launch Prime Early Access Sale in October
09/26Samsung to lure 175 million existing India customers with cashback card
09/26Explainer-NavIC, India's home-grown alternative to the GPS navigation system
09/26Exclusive-India's push for home-grown navigation system jolts smartphone giants
09/26S.Korean shares drop to lowest since mid-2020 as recession fears grow
More news
Analyst Recommendations on SAMSUNG ELECTRONICS CO., LTD.
More recommendations
Sales 2022 312 809 B 219 B 219 B
Net income 2022 40 397 B 28,3 B 28,3 B
Net cash 2022 116 751 B 81,8 B 81,8 B
P/E ratio 2022 8,75x
Yield 2022 2,71%
Capitalization 363 472 B 255 B 255 B
EV / Sales 2022 0,79x
EV / Sales 2023 0,71x
Nbr of Employees -
Free-Float 83,0%
Duration : Period :
Samsung Electronics Co., Ltd. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SAMSUNG ELECTRONICS CO., LTD.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 37
Last Close Price 54 200,00 KRW
Average target price 79 236,11 KRW
Spread / Average Target 46,2%
EPS Revisions
Managers and Directors
Jong-Hee Han Chief Executive Officer
Hee-Chan Roh Chief Financial Officer
Han-Jo Kim Independent Director
Sang-Gyun Kim Head-Compliance Management
Sang-Ju Lee Executive Director & Head-Compliance Team
Sector and Competitors