When Samsung Electronics president Jay Y. Lee, with Vietnam Prime Minister in July, had a simple message to transmit. “The success of Vietnam is Samsung’s success, and the development of Vietnam is the development of Samsung,” Lee told Pham Minh Chinh, promising a long -term investment for the country to be a larger manufacturing base for exhibition products.
Since the South Korean conglomerate entered Vietnam in 1989, has poured billions of dollars to expand its global manufacturing footprint beyond China. Many of his companions continued after the president of the United States, Donald Trump, placed tariffs on Chinese products in his first term.
The pioneer movement has turned Samsung Vietnam the largest inverter and foreign exporter of Samsung Vietnam. About 60 percent of the 220 million phones that Samsung sells every year worldwide are manufactured in Vietnam, and many are destined for the US. UU., Where Samsung is the No. 2 Smart Telephone Supplier, Chordination to the Research Firm Counterpoint.
Now, that dependence on Vietnam threatens with the backlash, since Hanoi is running to negotiate with the Trump administration to reduce a 46 percent punishment potential
While Vietnam and Samsung won a postponement this week after Trump stopped the rate by 10 percent for 90 days, Reuters interviews with more than one people of mass, even in Samsung and their suppliers, show that the company would be a main victim.
“Vietnam is where we produce most of our smartphones, but the rates (initials) were much higher than expected for the country, so there is a sense of confusion internally,” said a Samsung executive, who others were granted to others. Even if the two countries reach an agreement, the commercial surplus of approximately $ 120 billion of Vietnam with the US. Hanoi expects tasks to be reduced to a range or 22 percent to 28 percent, if not lower, Reuters reported.
Amid uncertainty, Samsung and its suppliers are considering adjusting the production, four people familiar with the matter said. That Kuld implies an increase in production in India or South Korea, thought that such steps would be expensive and consumed a lot of time, they said.
Samsung declined to comment on how he is browsing the tariff threat. He has said that he would previously respond flexible to US tariffs with their global supply chain and their manufacturing traces.
Vietnam’s foreign and foreign mines did not respond to comments requests either. Samsung’s rival, Apple, faces an even greater challenge at least in the short term, since Trump’s tariffs on Chinese imports have increased to 145%. Apple imports around 80 percent or iPhones sold in the US. From China, according to the counterpoint. Apple did not respond to a request for comments.
Lose low -cost appeal
The fear of the rate is the last cloud on the manufacturing panorama in Vietnam, which had become a popular destination for classmates who seek to diversify in the middle of the tensions of China-United States. But the boom has contributed to energy supply problems.
Vietnam has also increased its effective tax rate in large multinationals in line with global standards led by the OECD, that some companies that complained occurred without adequate compensation for the loss of previous tax incentives.
In addition, the influx of foreign companies pressed the supply of qualified workers and the increase in salary costs, according to several South Korean companies based in Vietnam. A person described the situation as “very serious.”
The growing pressures could cost a Vietnam investment appeal in relation to other countries, according to some economists.
“The loss of Vietnam could be India’s gain,” Nomura economists said in a note. India wants to move quickly in a commercial agreement with the United States, said a government official on April 10. The two countries agreed in February to work in the first phase of an agreement that will be completed at the end of this year. Vietnam has already made concessions to the United States, including the increase in imports. It was one of the first countries to announce the start of commercial conversations with the Trump administration after the moratorium on “reciprocal” rates.
Buteign manufacturers are nervous.
Ko Tae-Yeon, president or the chamber of business of Korea in Vietnam, said that initial had “panic” on Trump’s rates.
Some had made plans to cut staff in local factories, he said, without specific. In the light of Trump’s pause, companies were now in “Wait and see,” added Ko, who is the general director of Heesung Electronics, a supplier or a LG screen.
Samsung has not made a decision on how to respond to Vietnam tariffs given Trump’s changing approach, but an option is to produce some smartphone models destined for the United States in their factory in the city of Gumi in South Korea, two of the people said.
Four people said Samsung could increase production in India, but first he would need to expand his smartphone supply chain there, since India currently can only handle around 20% of Samsung’s total production.
BMI Research, a Fitch Solutions subsidiary, estimates that electronic products represent approximately 45% of Vietnam’s exports to the United States and the main producers such as Samsung would probably reduce production in anticipation of a decrease in demand.
Samsung also manufactures televisions, appliances and device screens in Vietnam. Its exports amounted to around $ 54 billion last year, about 15 percent of the total Vietnam, according to government estimates.
As Samsung weighs his options, the concerns are undulating the factory floors.
“I’m afraid they can cut everything,” said Nguyen Thi Hao, a 39 -year -old worker at a Samsung plant in Thai Nguyen, north of Hanoi.
Posted on April 12, 2025
