Samsung's Vietnam staff feel chill of tech slowdown

STORY: Workers in Vietnam may be feeling the effects of a global slowdown in consumer spending.

Samsung has reportedly scaled back production at its massive smartphone plant there.

That's according to workers at the facility.

Employees at the factory in northern Vietnam told Reuters their work days had been cut to just three a week.

They also said 'no overtime is needed'.

Reuters could not immediately establish if Samsung is moving production to other manufacturing bases to make up for lower output from the factory.

Samsung told Reuters it has not discussed reducing its annual production target in Vietnam.

The company is relatively optimistic about smartphone demand in the second half of the year.

It said last week that supply disruptions had mostly been fixed, and that demand would either stay flat or see single-digit growth.

But a dozen workers who spoke to Reuters outside the factory in the north of Vietnam said business is not good.

They claimed managers had told workers inventories were high and there were not many new orders.

Samsung has six factories in Vietnam, which pushes out half of the firm's massive phone output.

The South Korean company shipped 270 million smartphones last year.

Samsung is also Vietnam's biggest foreign investor and exporter.

It has poured $18 billion into the country and makes up a fifth of Vietnam's total exports.

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