Samsung Electronics factory locked down in Vietnam

Samsung Electronics' factory in Ho Chi Minh City, Vietnam [SCREENCAPTURE]

Samsung Electronics is scrambling to set up sleeping accommodations inside or near its factory in Ho Chi Minh City after the government warned it that operations would be suspended unless it submits an accommodation plan.

The lockdown measure, which will be applied to all factories in the Saigon Hi-Tech Park, came as the daily coronavirus cases shot up recently above 1,000 in the city.

Over 40 workers on Samsung’s production lines in the industrial park also tested positive, according to multiple media reports.

“Samsung Electronics is in the process of arranging accommodations and devising its plan to be sent the authorities by midnight of July 15, a deadline set by the authorities,” said a source with knowledge of the matter.

The source confirmed that none of Samsung Electronics' factories in the country have ceased operations, although they operate with
a reduced workforce.

Samsung Electronics runs a home appliance complex in the park, producing televisions, monitors and refrigerators.

The complex employs about 7,000.

Other multinational tech companies including Intel are located in the expansive industrial cluster.

Intel already managed to set up accommodations near its factory, according to Bloomberg, so it does not need to submit a plan.

Some factories with many coronavirus cased have shut.

The affected companies include Japan’s Nidec Sankyo and U.S. manufacturing service provider Jabil.

A similar alert was sounded in Bac Ninh and Bac Giang last month, where Samsung’s Galaxy smartphone production facilities are located.

As the northern part of Vietnam was hit hardest by the fourth wave of the coronavirus that began at the end of April, the regional government ordered the movement restrictions. At the time, the company brought in more workers to corporate dormitories so that they can be exempt from the restrictions.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]