Today, the Chinese website Nikkei reported that Xiaomi has started manufacturing smartphones in Vietnam, made by the OEM factory of DBG Technology (Guanghong Technology).
In this regard, Xiaomi confirmed this news to the Red Star Capital Bureau and stated that Vietnam is just the placement of the company’s products in Southeast Asia, and not the entire production chain has moved to Vietnam: “All our factories in Overseas are managed by partners, Xiaomi has no rights management property, India is Foxconn and BYD, and Hong Kong is DBG (Guanghong Technology).” The company’s transportation costs in the Southeast Asian market have increased. “Xiaomi and its partners are working together to implement local manufacturing in line with a strategy to reduce distribution costs and improve supply efficiency.”
The Chinese website Nikkei reported that the factory covers an area of about 200,000 square meters and has an investment of about 80 million dollars. In addition to smartphones, it will also produce various components such as data communication equipment and circuit boards. In addition to supplying the local market in Vietnam, the equipment will also be exported to select markets in Southeast Asia, including Malaysia and Thailand.
According to research firm Canalys, Xiaomi rose to second place among smartphone manufacturers in Vietnam in the first quarter of 2022, overtaking OPPO, Apple, Vivo and other companies with deep roots in Vietnam.
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Source: IXBT
