Samsung Electronics is boosting its investment in Vietnam, its largest smartphone manufacturing hub. Samsung's Chief Financial Officer Park Hark-kyu and Vietnamese Prime Minister Pham Minh Chinh met last week to shake hands on these latest financial agreements.
According to state-owned Vietnamese media cited by Korea JoongAng Daily, Samsung Electronics intends to increase its annual investment in its operations in Vietnam by a whopping $1 billion.
Vietnam is home to Samsung's most powerful smartphone manufacturing hub. Roughly half of all Galaxy mobile devices sold worldwide are made in the country.
Vietnam encourages Samsung to help local companies
Prime Minister Chinh strengthened his pledge to help foreign companies, like Samsung, do business in Vietnam, but also asked Samsung to help more Vietnamese companies be a part of its supply chain.
Samsung started manufacturing smartphones in Vietnam in 2008 at its factory in the northern city of Bac Ninh. And since 2014, Samsung incorporated 309 Vietnamese companies into its local supply chain.
In addition, Samsung Electronics has already made investments in Vietnam worth $22.4 billion. And now, the company intends to increase its annual budget by an extra $1 billion. Samsung says it hopes Vietnam will continue to improve its business environment.
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Last month, Samsung's smartphone manufacturing plant in Thai Nguyen assembled its one billionth Galaxy phone — a Galaxy S24 Ultra. The company held a ceremony to celebrate the milestone.
In total, Samsung's two Thai Nguyen and Bac Ninh factories have manufactured 2.13 billion Galaxy devices so far. They range from Galaxy smartphones and tablets to smart wearables.
