The US' business publication Bloomberg has recently published an article to highlight that Intel Corp. and Samsung Electronics Co. are both aiming to resume full operations of their HCM City plants by the end of November, a move that could provide relief to global supply chains.
At present Saigon Hi-Tech Park is helping many of its tenants, several of whom are currently running at approximately 70% capacity, to operate fully next month, according to Le Bich Loan, the park’s deputy manager, during a phone interview.
According to the article, Loan did not elaborate further on the steps that the park is taking, particularly with regards to the efforts aimed at bringing back workers who fled to their home provinces due to COVID-19.
The newswire stated that the Ho Chi Minh City unit of Nidec Sankyo Corp., maker of magnetic card readers and micro motors, is also looking to return to full operation in late November, Saigon Giai Phong reported, citing details given by Loan.
Samsung, Intel, and Nidec Sankyo did not immediately respond to requests for comment, according to the article.
The technology park is home to dozens of factories that produce components or services for global companies. Several companies operating within the Saigon Hi-Tech Park lost roughly 20% of their export orders in July and August due to COVID-19, Loan was quoted as saying by Saigon Giai Phong newspaper.
Throughout July Samsung shut three of its 16 workshops in Saigon Hi-Tech as it reduced workers at its HCMC CE Complex by more than half. Elsewhere, Intel, which has a test and assembly plant in Saigon Hi-Tech, had its workers on a sleepover arrangement in a bid to avoid halting operations.
Domestically, Samsung has six factories and is building a research and development centre. With 110,000 local employees, Samsung has invested more than US$17.7 billion in the country, with export turnover reaching more than US$56 billion last year.
During a recent meeting with the Prime Minister, Choi Joo-ho, general director of Samsung Vietnam, said that the company achieved a growth rate of 10% from January to July compared to the same period last year, and that if the factory in Ho Chi Minh City resumes normal operations, Samsung could exceed this year's export target.
Source: VOV/Bloomberg