Samsung Electronics Invests US$3 billion in a Smartphone Plant at Vietnam
Published By : 11 Nov 2014 | Published By : QYRESEARCH
Samsung Electronics, the South Korea-based company has applied for a license for starting production in Vietnam. The electronics manufacturer plans to make an investment of US$3 billion in setting up a second smartphone manufacturing unit in northern Vietnam. The plan is to build the unit in the Thai Nguyen province, where Samsung Electronics has already opened a plant in March amounting to an investment of US$2 billion. This announcement was confirmed by province’s Planning and Investment Department.
According to a spokeswoman from Samsung Electronics discussions with Vietnam’s government are already underway. The plan is to invest US$3 billion in the handset manufacturing business at Vietnam. However, the timeline of this expenditure is yet to decided and the funds are yet to be allocated.
This move comes with an intention to cut costs, increase production and subsequently get a better edge over others in the competition. Samsung Electronics truly wishes to outdo the Chinese rivals in the immediate future. Samsung Display Co Ltd, a subsidiary of the electronics firm stated that it received regulatory sanction to construct US$1 billion display module assembly plant in Vietnam.
Dau Tu, a Vietnamese newspaper stated, this move will bring Samsung Electronics’ total investment in Vietnam to US$11 billion.
Since last years, mobile phones and their production of their accessories have become the highest earning segments, surpassing textiles as well. During the first ten months of 2014 the export from this segment reached a total of US$19.2 billion, or around 15% of country’s total revenue.