What will the fate be of Nokia’s factory in Vietnam?

VietNamNet Bridge – The rapid fire pieces of news about the bad business performance of Nokia group worldwide has raised a big worry about the fate of the group’s mobile factory in Vietnam.

A question has been raised that if Nokia would do the things it has committed when applying for the investment license in Vietnam, if it is facing big difficulties in Finland, the home country, and many other localities in the world itself.

The Finnish Nokia group released world shaking news when giving a higher predicted loss level for the second quarter of the year. It has also announced the plan to lay off 10,000 workers, shut down many factories and research and development (R&D) centers in Finland, Germany and Canada.

Nokia has also reached an agreement on selling the luxury brand Vertu to Swedish EQT Partners at 200 million euro, or 250 million dollars.

According to The Financial Times, Nokia would have to sell a lot of its assets to get money to restore the mobile phone production unit which is now on the verge of bankruptcy, amid the hard pressure of the stiff competition on the smart phone market. Nokia now has to struggle with many redoubtable rivals, especially Apple and Samsung.

Nokia has lost 70 billion euro, or 88 billion dollars worth of the market value since the day Apple launched its iPhone series into the market in 2007. In order to regain the market share from Apple and Google’s Android-based products, Nokia decided to market the smart phone products using Microsoft’s operation system Windows.

However, the sales of the smart phone versions have been tragic, which, according to Bloomberg newswire, has led to the 10 percent price decrease of Nokia’s shares to 2 euro per share.

The current big problems Nokia is facing have given reasons to Vietnamese people to worry about the plan on building a factory in Vietnam.

Nokia plans to set up the factory, which specializes in making normal popular mobile phone products, in VSIP industrial zone in Bac Ninh province. The construction of the 302 million dollar factory was kicked off two months ago, while it is expected to become operational by early 2013. By that time, the factory would churn out 180 million products a year and generate 10,000 jobs.

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