Samsung Ho Chi Minh Factory Hampered by COVID-19... Shutdown Orders and Cluster Infections (Comprehensive)

[Asia Economy Reporter Jeong Hyunjin] The Ho Chi Minh authorities in Vietnam have temporarily suspended operations at the Samsung Electronics home appliance factory located locally due to the impact of COVID-19 and have ordered the provision of accommodation within the factory. Amid the rapid spread of COVID-19 in Vietnam, including the Delta variant, it has been confirmed that a cluster of COVID-19 cases has occurred at the Samsung Ho Chi Minh factory, raising concerns about production disruptions.

On the 13th (local time), according to related industries and Bloomberg News, Le Vick Loan, Deputy Director of Saigon Hi-Tech Park (SHTP), stated that Ho Chi Minh City has instructed companies with factories in SHTP, including Samsung Electronics, to suspend operations and provide lodging facilities for employees. Samsung Electronics operates a consumer electronics (CE) complex in SHTP, producing TVs and home appliances. Approximately 7,000 employees work at this factory.

Deputy Director Loan said, "We requested a temporary suspension of operations for all factories, including Samsung, until they submit plans to isolate employees and provide accommodations within the factory premises," adding, "After reviewing the plans submitted by companies, if the requirements are deemed met, permission to resume factory operations will be granted."

Loan explained that Intel has already been approved to continue operations after partially suspending factory operations and providing lodging facilities. Accordingly, all companies within SHTP, including Samsung Electronics, are expected to submit quarantine plans and prepare accommodations within the factory. Production lines are currently still operating.

Previously, Vietnamese authorities confined about 150,000 workers within industrial complexes in northern regions such as Bac Ninh and Bac Giang, where Samsung Electronics factories and Apple suppliers are located, to reduce the risk of COVID-19 infection. Most factories have prepared accommodations by setting up tents inside the factories in accordance with government directives.

Meanwhile, it has been confirmed that about 40 COVID-19 cases recently occurred at the Samsung Electronics home appliance factory. The factory where the cases were detected has been temporarily closed, and the number of employees working inside the company has reportedly been reduced to around 3,000. As a result, concerns about production disruptions are growing in the market, but the production lines are still operating.

Vietnam has been responding strongly to curb the rapid spread of COVID-19, including the Delta variant. Ho Chi Minh City has implemented strict quarantine measures since the 9th, banning all outings except for purchasing daily necessities for 15 days to prevent the spread of COVID-19.

This content was produced with the assistance of AI translation services.