In the last few years, China has changed its many laws impacting businesses directly and indirectly. Many smartphone companies were also facing problems in China over the last year. So, these companies are looking for alternative ways for doing their business.
Xiaomi has already started production in Vietnam and delivered the first batch of smartphones made in the new production facility in Vietnam.
The location of this new facility is an area of 200, 000 square meters in the north Vietnam of the country. They invested $80 million in this area. HongKong based, Electronics Manufacturing Service (EMS) provider, DBG technology is trusted with the production.
After this investment, Xiaomi got the second position in terms of market share in Vietnam with a 22% market share. Samsung with 34% of the market share is the biggest market player in Vietnam. Vietnam is a country located in southwest Asia. Xiaomi can export its products to neighbouring countries of southwest Asia including Indonesia, Malaysia, Philippines.
During the Pandemic period, the supply chain also got disturbed badly, So, with this new facility, Xiaomi will try to re-establish and diversify its supply chain. The world is going through big changes at present time, no one can predict the future, this is why companies are trying to diversify their supply chains and business strategies.
