Galaxy Note 7 incident has insignificant impact on Vietnam's export turnover

The General Statistics Office said the Galaxy Note 7 battery failure that forced Samsung to recall the product has had no significant impact on Vietnam's export turnover.

In the October socio-economic report, the General Statistics Office made assessments on the impact of Samsung's recall of the Galaxy Note 7 on export activities. This Korean giant has contributed a large part to the export structure of mobile phones and components in Vietnam in recent years, as well as playing a significant role in the overall export turnover.

However, the General Statistics Office said that in reality, the Galaxy Note 7 incident currently has no significant impact on the export turnover of the above product group.The reason, according to the management agency, is that a portion of the Galaxy Note 7s produced by Samsung factories in Vietnam are distributed in the domestic market, while exports of this product currently account for a small proportion.

The Samsung Galaxy Note 7 battery failure has had little impact on the export turnover of phones and components. Photo: Reuters

On the other hand, according to the statistics agency, Samsung Vietnam has boosted exports of other phone product lines to compensate for the decline in export turnover of this item.

"In the first 15 days of October, the export turnover of the phone and component group alone reached 1.35 billion USD, up 2.1% over the same period in 2015. It is estimated that the export turnover of the phone and component group in October this year increased by 5% over the same period last year," the General Statistics Office cited.

The agency also predicted that the Galaxy Note 7 incident could only reduce the export growth rate for the whole year of 2016 by about 0.3 percentage points, a level that is not considered large.

The General Statistics Office said that in the first 10 months of this year, the total export turnover of goods is estimated at 144.1 billion USD, up 7.2% over the same period last year. Of which, the export turnover of phones and components reached 28.3 billion USD, up 10.3%.

In 2015, the total value of Samsung Vietnam's electronic exports reached 33 billion USD. The company currently has 3 factories in Vietnam.

With the supply of about 35% of Samsung's total mobile device output worldwide, the company's factories in Vietnam are expected to be affected by the suspension of Note 7 production. However, in its most recent announcement, the electronics giant affirmed that Samsung Vietnam's 2016 exports will not be affected much. The jobs of about 110,000 workers will also be guaranteed.

According to VNE