Samsung Wins Vietnam Project of US$3 Billion
Published By : 26 Nov 2014 | Published By : QYRESEARCH
In an attempt to expand its smartphone production into northern Vietnam, Samsung Electronics has gained a US$3 billion project license.
The Vietnamese government has granted the South Korean company the green light to invest US$3 billion so that they can expand the production of their smartphone units in northern Vietnam.
The Vietnamese government issued a statement on late Monday that Samsung Electronics was awarded the project license on 17 November but did not divulge the details of the licensing terms.
Plans have been made by Samsung Electronics Vietnam to construct a plant in the Thai Nguyen province. The company had already opened a US$2 billion smartphone plant in March.
The new factory will allow Samsung to lower its smartphone prices in Vietnam and put itself in a better competitive position against the flush of low cost Chinese phones in the region’s market.
The total investment pledge that Samsun has now made in Vietnam has risen to US$11 billion after it begins construction of the second factory, as estimated by Dau Tu newspaper in Vietnam on 10 November.
The first plant that Samsung established in Vietnam earned the company US$1.9 billion in export revenue within the first four months of its working, as stated by the provincial government of Thai Nguyen.
Samsung has been facing some serious competition on all fronts of the smartphone war. It competes with Apple’s iPhones with its premium models and fights to stay alive against Chinese companies including Xiaomi and Lenovo that threaten to cut its revenue stream short in the mid and lower end models.