Samsung’s recall of the hazardous Galaxy Note7, might soon dent the Vietnamese economy.

Nguyen Mai, chairman of Vietnam’s Association of Foreign Invested Enterprises told Reuters that Samsung’s decision to halt production of the device could reduce Vietnam’s exports by an estimated 0.5 to 1 per cent this year.

According to Vietnamese customs data, about 20 per cent of the country’s total exports are made up of phones.

The South Korean company has manufacturing plants in both Bac Ninh and Thai Nguyen province, with an estimated workforce of about 110,000 people according to Samsung Electronics.

In an official statement, Samsung Vietnam said it would not cut any current staff members or change its export targets.

– TiVi Tuan-san