A big news is coming that the veteran tech company Samsung is considering removing some of its smartphones and electronics goods from Vietnam to India. The main reason behind this move is the fear of America imposing heavy tariffs (import duty) on goods coming from Vietnam. Moneycontrol has shown from sources that Samsung has also started talks with India’s contract manufacturing companies such as Bhagwati (Micromax) and Dixon Technologies.
Why is this step arising?
In fact, former US President Donald Trump had said to impose a heavy tariff of 46% on Vietnam, while this rate was proposed 26% for India. However, on 9 April, an announcement said that at present, this tariff would be 10% on goods coming from other countries except China for 90 days. But given this future risk, companies, especially a large exporting company like Samsung, have become alert and are looking for options.
Confirming this to Moneycontrol, a source said, “Yes, India’s Electronics Manufacturing Services (EMS) has started negotiations with companies, including the current Samsung’s current partners. Not only Samsung, many other companies located in Vietnam are also looking for some of their production to shift their production. Samsung and its partner are considering to increase their production.”
Vietnam is a big stronghold of Samsung, but why India?
Let us tell you that Vietnam is currently the biggest production hub for Samsung. According to Counterpoint Research, Samsung sells the worldwide smartphones (about 22 million per annum), about 60% of them are made alone in Vietnam alone. From here, Samsung also fulfills the demand of its second largest market i.e. America. In such a situation, the company is seeing India as an important option due to increasing trade tension.
According to sources, Samsung can use factories of its Indian EMS partners along with its factories in Uttar Pradesh and Chennai for this shift. The production of other electronics such as smartphones, but also home appliances (home appliances) can be shifted here, which will be exported.
Samsung, pli also exists in India already exist
Significantly, Samsung already makes smartphones and other electronics in its plant in Uttar Pradesh and Chennai in India. Also, the company also produces some special models from Indian partners like Dixon Technologies. Samsung has also been a part of the Government of India’s production-linked incentive (PLI) scheme for the last 5 years and has been taking advantage of it. Sources say that the company has so far deserved incentives worth more than Rs 1,000 crore under this scheme. This step can also be a major success for India’s ‘Make in India’ initiative.
The post Samsung can bring India from Vietnam Manufacturing, preparation to avoid American tariffs? First appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
