Vietnam Downplays Impact of Galaxy Note 7 Kill-off on Country’s Exports

Tuan Minh

11:37 29/10/2016

BizLIVE - The kill-off of Samsung Galaxy Note 7 phone will not exert a major impact on Vietnam’s export performance this year, said the government-run statistics office.

Vietnam Downplays Impact of Galaxy Note 7 Kill-off on Country’s Exports

A Galaxy Note 7 phone on display at a shop in Vietnam. Photo: Internet

Samsung’s recent decision to halt the production of its Galaxy Note 7 phone due to a battery fault will not have a significant effect on Vietnam’s trade performance this year, the General Statistics Office (GSO) has said in a report.
The office estimated that the kill-off of Galaxy Note 7 would reduce Vietnam’s export growth by 0.3 percentage point in the whole 2016.
Galaxy Note 7 does not have a large weight in Samsung Vietnam’s export basket while the South Korean electronics giant has boosted shipment of other phone models to offset the fall in export of Galaxy Note 7.  
Samsung’s latest key product was also sold in Vietnam, the office added.
In the first half of October this year, exports of Made-in-Vietnam phones and spare parts increased 2.1% from a year earlier to $1.35 billion. The export value of this goods group is expected to grow 5% year-on-year in October, according to GSO.
Exports of phones and spare parts likely increased 10.3% year-on-year to $28.3 billion in the first ten months of this year. This growth help Vietnam’s export value to reach $144.1 billion in the period, up 7.2% from the same period last year, GSO data showed.
After stopping the production and sales of Galaxy Note 7, Samsung Vietnam said on October 12 that the fallout would not have a large impact on the firm’s 2016 export revenue and it expected its exports to grow against 2015.
Samsung Vietnam shipped abroad $33 billion worth of electronic products in 2015. Around one third of total Samsung-branded phones sold worldwide are produced at its phone plants in the Southeast Asian country.

TUAN MINH