According to a report by Nikkei on July 5, Chinese consumer electronics company Xiaomi has started to produce smartphones in Vietnam. A Xiaomi spokesman responded to the Global Times on Tuesday, confirming that the news is true.
The spokesman said that the Vietnamese factory has been completed and put into operation in June 2021, and that Xiaomi‘s smartphones produced by the Vietnam’s OEM began to be sold in June this year. He also stressed that although Xiaomi has global supply chains, its Chinese supply chain has always been most important.
According to India’s Business Standard on Wednesday, Xiaomi entrusted its production to DBG Technology OEM factory in Hong Kong. In addition to smartphones, it will also produce various components such as data transmission equipment and circuit boards.
The Xiaomi official added that in recent years, due to the pandemic and the increase of import and export logistics costs, shipping costs in Southeast Asia market have increased. The firm says it will work together with partners to implement local production based on the strategy of reducing circulation costs and improving supply efficiency.
He said that Xiaomi‘s smartphones produced by the Vietnamese factory will be supplied not only to Vietnam’s local market, but also to other Southeast Asian countries, such as Thailand and Malaysia.
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Xiaomi emphasized that the Vietnamese factory is only one of the company’s product layouts in Southeast Asia, which does not mean that the whole production supply chain will move to Vietnam. Xiaomi has insisted on empowering the growth of Chinese supply chain enterprises over the years and investing in Chinese science and technology. The localization rate of parts and technologies for Xiaomi‘s cell phones and eco-chain products has been steadily increasing for many years. At present, there is no overseas country that can replace China’s supply chain cluster, which should be the consensus of the entire industry.