Samsung injects an additional US$1.8 billion into new Vietnam project
Society – Economy - Ngày đăng : 06:27, 23/09/2024
A memorandum of understanding (MoU) to develop a US$1.8 billion project for screens and electronic components was signed by representatives of the Bac Ninh provincial administration and Samsung Display on September 22 afternoon.
The exchange of the MoU took place during a conference to announce the province’s planning and investment promotion for 2024. The ceremony was witnessed by Prime Minister Pham Minh Chinh, Minister of Science and Technology Huynh Thanh Dat, along with representatives of international organizations, and diplomatic agencies.
The RoK group began investing in Bac Ninh in 2008 with an initial capital of US$670 million. After more than a decade, Samsung has become the largest foreign direct investor in Vietnam, with total investment exceeding US$22.4 billion in Bac Ninh, Thai Nguyen, and Ho Chi Minh City. Nearly 50% of the investment has been channeled into Bac Ninh.
Alongside Samsung Display (SDV), Samsung Electronics Vietnam (SEV) is operating a manufacturing plant in Bac Ninh. The first half of this year saw the SDV plant generated US$6.8 billion in revenue and US$283.6 million in profit. Meanwhile, SEV reported revenue of more than US$8.2 billion and a profit of US$692 million.
At a meeting with Prime Minister Pham Minh Chinh in July, Samsung Chairman Lee Jae Yong committed to a long-term partnership with Vietnam, emphasizing shared risks and harmonized interests.
Samsung plans to make significant investments over the next three years to turn its plants in Vietnam into the group’s largest display module production base globally.
Currently, Samsung’s mobile phone production in Vietnam accounts for over 50% of its global output.
At the September 22 conference, Bac Ninh signed MoUs for 17 investment projects with a total investment of US$5.5 billion. Among big investors were Foxconn, GoerTek, Victory Giant Vietnam, and Aeon.
By the end of the first eight months of the year, Bac Ninh was the leading locality in Vietnam for attracting foreign direct investment (FDI). It aims to attract approximately US$7 billion in FDI this year.