In response to media reports that Xiaomi has begun to produce smartphones in Vietnam, according to the Global Times, a Xiaomi spokesperson responded on the 6th that the news is true. Mobile phones go on sale. A Xiaomi spokesperson also emphasized that Xiaomi has a global supply chain, “but for Xiaomi, the most important thing has always been the domestic supply chain.”
Xiaomi confirms smartphone production in Vietnam, but “the most important thing has always been the domestic supply chain”
IT House learned that Xiaomi had previously mainly produced smartphones in China and India. According to a report by India’s “Business Standard” on the 6th, Xiaomi entrusted production to DBG Technology (Guanghong Technology), a Hong Kong-based capital located in Taiyuan Province, northern Vietnam. factory produced. The entire factory covers an area of about 200,000 square meters and has an investment of about $80 million. In addition to smartphones, it will also produce various components such as data transmission equipment and circuit boards.
A Xiaomi spokesperson responded that in recent years, due to the epidemic and the increase in import and export logistics costs, the cost of shipments in the Southeast Asian market has risen. local production”. The spokesperson also said that Xiaomi phones produced by the Vietnamese factory will not only supply the local market in Vietnam, but also other Southeast Asian countries, such as Thailand and Malaysia.
Xiaomi also emphasized that the establishment of a factory in Vietnam is only one of the company’s product layouts in Southeast Asia, not the entire production supply chain has been relocated to Vietnam. Xiaomi has a supply chain with a global layout, but Xiaomi has also insisted on empowering the growth of Chinese supply chain companies for many years, and insisted on investing in domestic technology. The localization rate of parts and technologies of Xiaomi mobile phones and ecological chain products has been steadily increasing over the years. “At present, no overseas country can replace China’s supply chain cluster. This should be the consensus of the entire industry.”