‘Samsung Vietnam always plays an important role as a global manufacturing base of our group’
‘Samsung Vietnam always plays an important role as a global manufacturing base of our group’
The Vietnam business of Samsung has rejected media reports that it may partially move its smartphone manufacturing to India.
Such reports are untrue, Samsung Vina Electronics Co. Ltd. (Samsung Vietnam) told Tuoi Tre (Youth) newspaper on Tuesday.
Samsung’s plants in Bac Ninh and Thai Nguyen Provinces, both located in northern Vietnam, are in normal operation and they are in no way related to any change to the production of the factory in India, the South Korean electronics giant said.
“Samsung Vietnam always plays an important role as a global manufacturing base of our group,” a spokesperson said.
Samsung Vietnam executives had told Tuoi Tre that Vietnam is not only an attractive investment destination but it is also the second home of the corporation.
Samsung is now the largest foreign investor in Vietnam, with an investment of US$17.3 billion.
The company built its first plant in the Southeast Asian country at a cost of $670 million in 2008.
Samsung is running six plants and one research and development center in Vietnam.
The factories in Bac Ninh and Thai Nguyen are Samsung’s largest phone manufacturing facilities in the world.
Its electronic appliance plant in Ho Chi Minh City is Southeast Asia’s biggest while Samsung Vietnam Mobile R&D Center is the corporation’s largest R&D unit in the Southeast Asian region.
Samsung Vietnam is providing jobs for 130,000 people, alongside its major part in the Vietnamese economy.
Samsung leaders have said that they will focus on research and development in the next ten years, besides manufacturing.
The company expects to finish building an R&D center in Tay Hoi, Hanoi in late 2022, with personnel to rise to 3,000 people from the current 2,200.
“Here we’ll invest in a quality workforce in order to develop 5G, AI, and big data, while building infrastructure,” Samsung Vietnam said.
“We look forward to helping develop Vietnam’s IT sector and economy.”
The Economic Times reported on Monday that “Samsung may shift a major part of its smartphone production to India from Vietnam and other countries.”
“Samsung is likely to diversify its production lines for making smartphones to India under the PLI (Production Linked Incentive) scheme and this will have an impact in its existing capabilities across various countries like Vietnam,” the ET quoted a person familiar with the matter as saying.
Samsung has told the Indian government that it would produce smartphones worth over $40 billion in the next five years, with $25 billion worth of phones priced at $200 at the factory.
Most of these phones will be exported, the newspaper cited a senior Indian government official as saying.
