NEWS & EVENTS

Samsung leaving makes Chinese people 'burdened'

04/01/2020
In the absence of any potential new producers to "fill the gap", at least 60% of Huizhou's business households are almost closed. The situation can only get worse in the following week if the situation doesn't change.
In Huizhou City - north of the Pearl River Delta - once a bustling center of China's main manufacturing industry, Li Bing is looking out at his small restaurant and recalling the hustle of the customer group who come out from the nearby factory. But for the past 2 months, her store only had empty tables. The same scene took place in the Jinxinda complex, located in the central city of Guangdong province.

The reason behind this gloomy situation is easy to understand, that Samsung has closed its factory in Huizhou - this is the last smartphone factory of Samsung in China. In the past, Ms. Li's restaurant was always crowded with customers, which were workers at the Jinxinda factory. This is the source of "living" for many other businesses in this area for nearly 3 decades.

However, after Samsung decided to relocate its factory to Vietnam and India - in response to the U.S.-China trade war, industry leaders also considered China's position in the supply chain. Global. As a result, business households like Ms. Li suffer the consequences and are wondering what will come next.

Li said: "Before the Samsung factory left, our sales could reach 60,000 CNY (8,500 USD) to 70,000 CNY (9,900 USD) per month. Most customers are Samsung employees. However, now, we only earn a few hundred CNY per day, only 2 to 3 tables every night with guests. "

In the absence of any potential new producers to "fill in the gap," at least 60% of nearby businesses are nearly closed, an even higher figure. next week if nothing changes.

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Liu Kaiming, president of the Institute of Contemporary Supervision, responsible for monitoring working conditions at hundreds of factories in China, said: "Samsung is the world's leading manufacturing enterprise. owning the entire supply chain ecosystem in Guangdong and neighboring provinces for the past 20 years At least 100 factories in Guangdong will be closed. They cannot do anything without the Samsung Huizhou factory. , not to mention the shops and eateries in the surrounding area. "
The impact of the plant closure has a spreading effect on the west of Huizhou - Chang'an town of Dongguan City. It is home to thousands of migrant workers and executives of a factory once owned by Janus Intelligent, China's leading robotics company. Currently, the number of working hours of workers in this place has decreased significantly. Some people are required to take up to 3 months of leave, others are only allowed to work for one to two days with Samsung - their biggest customer since the 2000s.
Last year, Janus posted a net loss of 2.86 billion CNY (405 million USD), as orders from Samsung were halted from the fourth quarter of 2018. In September, Janus sold a majority stake in the plant in Dongguan to Fistar Panel Technology. A Fistar executive confirmed the deal and declined to comment on the employee layoff plan.
Since last month, two-thirds of the factory's employees, or more than 3,000, were told they did not need to continue working for a variety of reasons, most of which were required to work only alternately. day.
Liu Fang, a worker from Henan Province, said: "We feel that the factory is implementing a strategy, but they do not necessarily have to completely lay off their employees. executives take a 3-month vacation with a monthly income of less than 2,000 CNY (USD 283). Production line workers work 1 day and then take 2 days off so we cannot earn a normal income and forced to leave. "

A few years ago, with the regular order policy of Samsung, this factory has more than 10,000 workers. The Janus factory is located on both sides of the road, even the nearby bus stop is named after the company. "At its peak, the factory had hired more than 40 nearby 7-storey residential buildings as dormitories for employees, but now only has 20."

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Returning to Huizhou, the authorities here have yet to confirm a new plan for the abandoned factory, while locals are looking forward to the replacement. Liu Hua, a convenience store owner, said: "Local consumer spending is declining and even dying. Our business has dropped by at least 80% compared to August. "The number of workers leaving since September is huge. Every store here - from pharmacies, supermarkets to cafes, depends on Samsung employees."

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In the "golden age" was in 2011, when Samsung's smartphone sales ranked first in the world, two factories in Huizhou and Tianjin produced 70.14 million and 55.64 million phones. According to Huizhou customs data, in October, the first month after the Samsung factory closed, exports from businesses of this city fell to 14 billion CNY (2 billion USD), down 27%. compared with the same period last year.

In 2017, Hue Chau factory alone produced 62.57 million phones, accounting for 31% of the city's total import volume, equivalent to US $ 15 billion. Accordingly, this factory became one of the top 10 exporters in China. Last year, Huizhou factory fell to 13th place from 10th.

Ms. Li's restaurant and others around the factory area are facing many risks, until local authorities find a solution, or they will be closed. "We hope the local government can set up a factory with 1,000 to 2,000 employees working here. Only the workers can 'save' us," Li said.






 

Source: cafef.vn

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