Samsung’s Vietnamese subsidiary won’t be facing any job cuts due to the loss occurred by the Samsung Note 7 “blast issues”. Samsung has to finally shut off the device’s production which caused a direct loss of around 3.5 billion dollars to the Smartphone maker. But according to Samsung Vietnam, no such problems related to job evacuation would have to be faced by Samsung workers.
As we all know how much loss Samsung has faced due to Note 7 issues. Amounting to around 3.5 Billion dollars, the loss is not less but it seems like Samsung Vietnam won’t be doing what all the Samsung workers were fearing of.
According to a report by the firm on Wednesday, they will continue to have their present staff intact without any job cuts or demotions. Samsung Vietnam which employs around 110,000 people finally said something about the Note 7 issues after 2 months of the device launch.
Samsung Vietnam stated that they won’t cut any jobs and further believe that this year their exports instead of decreasing will increase to up to 32.7 Billion Dollars which is strange but Samsung must have thought something over it too.
The statement read as, “The Note 7 incident may not bring about any significant impact on our exports in 2016; in fact this year’s exports turnover is expected to increase.”
Samsung has been an active investor there in Vietnam and it especially a low-cost manufacturing hub for some “luxurious” products that include its world famous SMART television range.
Now let me explain you why the statement by Samsung there in Vietnam seems to work in long run.
As we all know the Note 7 issues have alarmed every other nation and this would be an alarming signal for the Vietnamese Government too to stop relying on foreign investments and would thus force them to open up the exports up to 70 percent and in this way even Samsung Vietnam would be benefitted and this is the only reason why there would be no cuts in jobs there in Samsung’s Vietnamese subsidiary.
This also seems legit as Vietnamese Government’s economy is vastly reliable over the electronic firms because firms like Microsoft, Intel, Canon Inc, LG and Sony Corp are also making “low-cost” luxurious products there.
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