Samsung Speaks Up About Moving Smartphone Production Line From Vietnam
Recently, there have been rumors that Samsung Electronics is gradually moving its production of flagship models to India, including the phones currently being produced in Vietnam, in order to minimize the damage from the US-China trade war and expand its business operations in the world’s fifth largest economy. Samsung has been present in Vietnam for almost three decades and is the largest FDI enterprise in the country. Therefore, this information has caused concern and anxiety for many people.
Samsung officially responded to this issue on March 17, stating that the company will not transfer its smartphone production line from Vietnam to India.
The India Production Line Does Not Affect Operations In Vietnam
Choi Joo Ho, CEO of Samsung Vietnam, stated that products manufactured in India will serve domestic demand and a small portion will be exported to African countries. Meanwhile, products from the production line in Vietnam will be exported to 128 countries worldwide.
He also added that Samsung is committed to long-term investment in Thai Nguyen and has recently increased an additional $1.2 billion in capital to the Samsung Electro-Mechanics Vietnam factory, raising the total capitalization in the province to $7.5 billion.
30% of Samsung’s Revenue Comes From Its Factories In Vietnam
In fact, the business situation of Samsung in Vietnam is still optimistic in the context of many enterprises struggling with the impact of the general economic situation. According to the 2022 audit financial report, Samsung’s revenue reached 234 billion USD, an increase of 8% compared to 2021. Of this, the total revenue from the four factories in Vietnam was 4.6 billion USD.
The Samsung Thai Nguyen (SEVT) continues to lead in revenue among Samsung’s system of factories in Vietnam with over 36.3 trillion won, equivalent to about 28 billion USD, up about 13% compared to 2021. This year, Samsung recorded SEVT’s full-year profit increased by 18%, to over 2.71 trillion won, equivalent to about 2.1 billion USD.
Currently, SEVT maintains its position as the world’s largest smartphone manufacturing plant. In 10 years of investment in Thai Nguyen, Samsung has raised the market capitalization in this locality from 2 billion USD to 7.5 billion USD.
Samsung And Long-Term Investment Plan In Vietnam
Operating in Vietnam for nearly 27 years, in addition to 4 manufacturing plants, Samsung has also built a research and development (R&D) center in Hanoi, with an investment of up to 220 million USD and opened at the end of last year. Samsung aims to make this R&D center their large-scale strategic research and development center. At a recent event attended by the Prime Minister, the General Director of Samsung Vietnam Complex Choi Joo Ho committed to turning the new R&D center in Hanoi into a leading global center.
The group has invested up to 18 billion USD in Vietnam and is planning to increase this total investment to 20 billion USD. According to Samsung Vice Chairman Han Jong-hee, the company has set clear goals and will continue to effectively implement projects in Vietnam, promoting research and development in artificial intelligence and big data.
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