After a mandatory decision, Xiaomi announced that it went out of China and started to produce smartphones in its factory in Vietnam. In the statement made by Xiaomi Vietnam, the first batch of Xiaomi devices produced at the factory were shipped.
Xiaomi’s Vietnam factory started production
Shipping and logistics costs in the Southeast Asian market have seen a noticeable increase in recent years due to the Covid-19 outbreak. To solve this problem, Xiaomi joined forces with its partners to implement production localization.
Targeting the Southeast Asian market, the new Xiaomi Vietnam factory aims to both increase efficiency in distribution and reduce logistics costs. Xiaomi phones made in Vietnam will be used to meet the demands of other Southeast Asian countries, including Malaysia and Thailand, in addition to the local market.
According to the statement, the new production line is located in northern Vietnam and covers an area of 200,000 square meters. Built with an investment of $80 million, Xiaomi Vietnam is co-operated with Hong Kong-based DBG Technology.
Xiaomi has a 22 percent share in the smartphone market in Vietnam and ranks second. With the new investment, Xiaomi will rival Samsung, which controls 34 percent of the Vietnamese market. Another Xiaomi manufacturing center located outside of China operates in India.
With the increase in costs in the Chinese market, manufacturers from many different industries started to shift to Vietnam. In addition to technology manufacturers, these sectors include shoe, clothing and furniture companies.
Having an important place in the world of smartphones, Xiaomi wants to take its place in the sector even higher with the products it produces. Xiaomi broke a record by releasing 10 flagship smartphones in 1 year.
What do you think about the new Xiaomi factory? Do you think the prices are cheap? Don’t forget to share your views with us in the comments!
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