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Severe epidemic in India and Vietnam, South Korean companies such as Samsung and Hyundai are affected

Feb 02 70
The situation of the epidemic in India is still very severe, and the impact has spread to the entire Southeast Asian region. Among them, the scope of confirmed cases in Vietnam is continuing to expand. South Korean media pointed out that South Korean companies such as Samsung Electronics, Hyundai Motor and LG Electronics, which set up factories in the two countries, have been affected.

According to a report from BusinessKorea, Hyundai Motor's car manufacturing plant in Chennai, India, was forced to suspend production for 10 days last month. After three to two shifts, it was able to resume production on June 1. However, this may still lead to a decline in car production. In addition, local employees are opposed to resuming work under the trend of repeated epidemics. Whether this will affect the production schedule of the factory remains to be seen.

India and Vietnam are also important production bases for Samsung Electronics and LG Electronics. At present, the capacity utilization rate of Samsung's smartphone factory in Noida, India is 40%. As the sales of smart phones continue to grow and mobile phone brands release new phones in a concentrated manner, Samsung's market position may be affected. As for LG Electronics, it is also facing severe challenges in product supply.

Although in recent years, Korean companies such as Samsung Electronics and LG Electronics have increased their investments in India and Southeast Asian countries, which has reduced the production capacity in China to a certain extent, the sudden outbreak of the epidemic has also cast uncertainties for the future investment of the two Korean companies. factor.