Newly-appointed Samsung Electronics executive chairman to visit Vietnam

Samsung Electronics executive chairman Lee Jae-yong is slated to pay a working visit to Vietnam later this year to seek new investment opportunities, according to South Korean industry sources.

Lee was appointed to the top position at the South Korean giant on October 27. Samsung Electronics said its board of directors cited the current uncertain global business environment and the pressing need for stronger accountability and business stability in approving the appointment.

Toward the goal, Lee’s planned working trip to Vietnam also aims at strengthening the heavyweight’s global management, The Korea Times reported Monday, citing industry sources without revealing their names.

Plans for him to visit Samsung Electronics' Vietnam R&D center in Hanoi at the end of this year are being discussed, the newspaper added.

At present, about 60% of Samsung smartphones are sourced from Vietnam, where the tech giant is the largest foreign investor. Samsung had invested more than $20 billion as of June 2022, about 28 times more than its initial commitment.

Samsung Electronics has invested $220 million since March 2020 to build the R&D center and aims to complete construction by the end of this year.

Samsung Vietnam, part of Samsung Group, also operates its own R&D center in the country. Also located in Hanoi, the unit is called Samsung Vietnam Mobile R&D Center.

Samsung Group’s four manufacturing subsidiaries in Vietnam earned profits of 1,652 billion won ($1.18 billion) in the second quarter, up 40.42% year-on-year, the giant said this September.

Of the four, Samsung HCMC CE Complex in Ho Chi Minh City was the best first-half performer, with profits of $1.39 billion on revenues of $14.73 billion, up 74.9% and 45.7% year-on-year, respectively.

It was followed by Samsung Electronics Vietnam (SEV), located in the northern province of Bac Ninh, whose corresponding figures were $665.4 million on $8.41 billion, up 5.8% and 24.26%.

Samsung Display Vietnam, also in Bac Ninh province, saw first-half profits plunge 55.35% year-on-year to $134.5 million on revenues of $7.75 billion, up 34.29%.

Samsung Electronics Vietnam Thai Nguyen (SEVT), located in the eponymous northern province, recorded profits of $234.6 million and revenues of $2.55 billion in the first half, up 64.2% and down 0.87% year-on-year, respectively.

Samsung is among the top 10 foreign-invested tax payers in Vietnam, according to the General Department of Taxation.