Published in News

Samsung to invest in Vietnam smartphone factory

by on10 November 2014

Writing a cheque for $3 billion

Samsung has applied for a license to invest $3 billion in building a second smartphone factory in northern Vietnam. The outfit plans to build the factory in Thai Nguyen province, where it opened a $2 billion smartphone plant in March.

A Samsung spokeswoman told Reuters the company is in discussions with Vietnam's government to invest up to $3 billion in its handset business. The schedule for the spending and how much will ultimately be spent have yet to be decided. Samsung has been increasing production in Vietnam to reduce costs and better compete with the low-priced smartphones of Chinese rivals.

Samsung Display has received regulatory approval to build a $1 billion display module assembly plant in Vietnam. The latest move would bring its total investment pledges in Vietnam this year to around $11 billion. Mobile phones and accessories became Vietnam's biggest cash earner last year, taking over textiles. In January-October this year, export revenue reached $19.2 billion, or around 15 percent of the country's total.

Samsung's first smartphone plant in Vietnam, built with an investment of $2 billion, generated $1.9 billion in export revenue in its first four months of operation, according to the Thai Nguyen provincial government.

Rate this item
(0 votes)

Read more about: