Xiaomi has just recently started production of its smartphones in Vietnam. The company has began making its devices in the country, which will then be exported to other Southeast Asian markets.
According to a NikkeiAsia report, the Chinese tech giant has started its smartphone production in the northern province of Taiyuan from a Hong Kong based foundry. Furthermore, the handsets made in Vietnam will be exported to other nations like Malaysia and Thailand. This moves arrives as the country sees a growth in population and its economy, which signals a rise in demand as well.
Thus, Xiaomi hopes to establish a foothold in the market, which is expected to see growth as well. It also aims on catching up to its rival Samsung Electronics. The South Korean brand is currently the most popular brand in Vietnam in terms of sales market share. As per local media reports, the Chinese company has trusted production to Hong Kong based DBG Technology. This factory covers an area of around 200,000 square meters and has an investment of about 80 million US Dollars.
Apart from smartphones, this site will also be responsible for the production of data transmission equipment and circuit boards. As of right now, Xiaomi mainly made its smartphones in China and India. However, the global pandemic in 2020 lead to the supply chain being severely disrupted, which in turn affected sales as well. So, the company plans on diversifying and spreading its supply chain.
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