Xiaomi starts making smartphones in Vietnam

Chinese smartphone brand Xiaomi has started manufacturing smartphones in Vietnam, including circuit boards and many other components. Does this mean that Xiaomi is shifting the production chain to Vietnam? Xiaomi responded that it was only for the layout of the Southeast Asian market and to reduce the logistics cost of exporting from China. The Xiaomi series of smartphones made in Vietnam is mainly for markets such as Vietnam and Malaysia, which can greatly reduce logistics costs and shorten delivery times.

According to Xiaomi, all of the company’s overseas manufacturing plants are operated by partners, and Xiaomi has neither the right to operate nor ownership of these manufacturing plants. For example, in the Indian market, Xiaomi through its partners Foxconn, BYD and Guanghong Technology, etc., the manufacturing plant in Vietnam is also in charge of the partners.

As for why Xiaomi manufactures mobile phones in Vietnam, the reason is also given. In recent years, due to the increase in import and export logistics costs due to the epidemic, the cost of shipments in the Southeast Asian market has risen. Now, after transferring some production lines to Vietnam, the logistics cost can be greatly reduced, and the production here can be immediately delivered to the Vietnamese channel for shipment.

At the same time, Xiaomi mobile phones made in Vietnam are also supplied to Southeast Asian markets such as Malaysia, which can greatly reduce logistics and transportation costs and shorten delivery time. Of course, it is also possible to reduce tariffs and other expenses when producing in Vietnam and selling locally in Vietnam. It is also inevitable for Xiaomi to deeply cultivate the Southeast Asian market. Another important reason for Xiaomi’s local production in Vietnam is the rapid growth of the Vietnamese market.

Via: globaltimes