Samsung increases investment in Vietnam
2022.12.06 02:40
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Samsung increases investment in Vietnam
Budrigannews.com – Samsung, the electronics giant from South Korea (KS:) the Vietnamese government and state media reported on Tuesday that LG plans to invest billions of dollars more in Vietnam.
After Samsung reduced smartphone production in Vietnam twice this year in response to lower global demand, the company made the announcement.
OTC: Samsung Electronics Vietnam’s state media reported that the largest single foreign investor will invest $2 billion more in the Southeast Asian nation, bringing its total to $20 billion.
For a number of years, Samsung has produced approximately half of its smartphones in Vietnam, contributing nearly a fifth of the country’s total exports.
Following a meeting that took place on Tuesday in Seoul between the president of Vietnam, Nguyen Xuan Phuc, and the chief executive officer of the company, Han Jong-hee, Vietnam News Agency reported that the additional investment will further solidify Vietnam as the primary production site for Samsung.
A request for clarification was made, but Samsung did not immediately respond.
In a separate statement, the Vietnamese government said that LG would also invest an additional $4 billion in the country to make it a hub for smartphone camera production.
The government statement and the report from the state media did not provide any additional information regarding the two companies’ investment.
In response to a request for clarification, LG, which has invested $5.3 billion in Vietnam to manufacture electronic home appliances, cameras, and auto parts, did not immediately respond.
Vietnam and South Korea said on Tuesday that they have upgraded their relations to a “comprehensive strategic partnership,” whereas South Korea has only established relationships with China, Russia, and India thus far.
By 2030, bilateral trade between the two nations is expected to reach $150 billion, up from $78 billion last year.
Vietnam has become one of the most appealing locations for electronics companies to set up shop over the past ten years, but this year, production has been cut back due to lower global demand.
