Vietnam is one of the main manufacturing hubs where Samsung phones are made. The company has invested billions of dollars in setting up state-of-the-art manufacturing factories in the country and it now plays an important role in its global supply chain.
These factories had a tough time turning a profit in the fourth quarter of 2023 due to headwinds in the global business environment. However, they've bounced back with a bang, earning Samsung $1.2 billion in profit in the first quarter of this year.
Samsung's Vietnam factories are raking in the money
Samsung's four factories in Vietnam lost a combined $181 million in Q4 2023. They've turned it around massively in the first quarter of this year by posting a combined profit of $1.2 billion. Samsung Thai Nguyen (SEVT) is the company's best-performing factory in Vietnam as it alone made $707 million in profit. This is where smartphones and other mobile devices are made.
Samsung Electronics Vietnam (SEV) and Samsung Display Vietnam (SDV), located in the country's Bac Ninh Province, made $300 million and $123 million, respectively. Consumer electronics devices and display products are made at these factories. Lastly, Samsung Electronics HCMC CE Complex (SEHC), where home appliances are manufactured, made $40.7 million profit.
Total revenues across all factories came in at $16.25 billion for the quarter, a $2 billion improvement from the fourth quarter of 2023. Samsung's current investments in Vietnam exceed $22 billion. Its CFO Park Hark-kyu met with Vietnam's Prime Minister Pham Minh Chinh last month and announced plans to invest an addition $1 billion annually in the country.
Image credit: Samsung
