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Sony to stop production, begin trading in Vietnam
Sony Vietnam will close down its only factory in Vietnam next September, a source told Thanh Nien Thursday, saying 200 workers for the factory will be given “golden handshakes.”
The company, a joint venture between Sony Corporation and Vietnamese firm Viettronics Tan Binh, was established in 1994 to produce electronic devices.
Director of Viettronics Tan Binh, Ngo Van Vi, confirmed the report, saying the joint venture plans to focus on trading.
But he denied the change was being made because the business is doing badly or because of macroeconomic issues.
The source said it was Sony’s choice to switch to trading.
The source added the factory, located in Ho Chi Minh City’s Binh Thanh district, produced mainly vacuum tubes for CRT television sets, which are becoming out-of-date and being replaced by LCD and plasma televisions.
The source revealed Sony plans to establish a foreign-owned company in 2009 that would import and distribute electronic products.
It is thought that the Japanese giant is planning for the regulation change next year when the government is set to allow foreign companies to import.
Sony Vietnam said it would pay 200 people working in the factory higher severance pay than the normal one month’s salary for each year of service.
The 240 other workers would continue to work for the company when it switches to trading.
The warranty on all its products would continue to be honored, it said.
During its 14-year existence, the joint venture has invested US$16.6 million to produce vacuum tubes, television sets, compact disc players, sound devices, cameras and data storage devices.
Thanhnien
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