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Official: Xiaomi begins smartphone production in Vietnam

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In a bid to broaden its mobile phones industry, the Chinese mobile giant, Xiaomi has confirmed that it has begun smartphone production in Vietnam. According to the mobile giant the production is being made by DBG Technology (Guanghong Technology) OEM factory.

The Chinese mobile giant confirmed the new development to the Red Star Capital Bureau that it has begun smartphone production in Vietnam by DBG Technology, a subsidiary of Hong Kong’s DBG Electronics Investment Limited, at a factory in Northern Thai Nguyen Province.

Nguyen Duc Trong, a Xiaomi authorized reseller in Vietnam, stated that manufacturing smartphones in Vietnam would aid in resolving issues caused by the Covid-19 disruption on the global supply chain and in addition to rising import and export logistics costs in the Southeast Asian market which led to an increase in the company’s shipping costs.

“[Vietnamese] consumers will have a more stable supply, while the country will solidify its position in the race for smart manufacturing,” Nguyen said, “Xiaomi and partners are working together to implement local production in line with the strategy of reducing circulation costs and improving supply efficiency.”

As per reports, the Vietnamese factory is estimated to cover an area of about 200,000 square meters and the firm has invested over about $80 million therein. Likewise, aside from smartphone production, the factory will manufacture a variety of components, including data transmission equipment and circuit boards, and will be supplying the Vietnamese market, as well as exporting to Southeast Asian markets such as Malaysia and Thailand.

Back in the first quarter of the year, the firm was ranked the second-largest smartphone manufacturer in Vietnam after Samsung. According to data from Canalys, Xiaomi officially surpassed a series of long-standing names in the Vietnamese market to rise to the second position among the biggest smartphone manufacturers with a 22 percent market share increase.

Xiaomi surpasses mobile brands like OPPO, Apple, Vivo, Realme, and Huawei to be the fastest-growing smartphone brand in the Vietnamese market. Follow TechGenyz for more tech news.

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