reports show that Xiaomi’s spokesperson also emphasized that setting up a factory in Vietnam is only one part of the company’s product layout in Southeast Asia, and it is not that the entire production and supply chain will be moved to Vietnam. Xiaomi has a global supply chain, "but for Xiaomi, the most important thing has always been the domestic supply chain." The localization rate of parts and technologies for Xiaomi mobile phones and ecological chain products has been steadily increasing over the years. "Currently, no overseas country can replace China's supply chain cluster. This should be the consensus of the entire industry."
It is reported that Xiaomi previously mainly produced smartphones in China and India. However, after the epidemic spread across the world in 2020, the supply chain was disrupted, which had a huge impact on sales. In order to disperse the production base, it was decided to produce in northern Vietnam, which is easily relocated from China. According to Nikkei Chinese, Vietnam has a population of nearly 100 million, and the rapid development of mobile Internet and e-commerce has driven the rise of the local smartphone market. In 2021, Vietnam's smartphone market grew by 11.9% year-on-year, with mobile phone sales reaching 15.9 million units.
Canalys data shows that from January to March 2022, Xiaomi ranked second in Vietnam’s smartphone sales list, with a sales share of 22%. Its sales volume was second only to the Korean mobile phone brand and Samsung Electronics , which had a sales share of 34%, slightly higher. Chinese brand OPPO has a sales share of 17%. (Article | "Financial World" Weekly Liu Zhen)
