Samsung's four subsidiaries in Vietnam made a total profit of KRW2,999 billion ($2.26 billion) in the first half of this year, down 11.2% year-on-year, according to the South Korean tech giant's interim business report.
In the same period, sales at the four subsidiaries, namely Samsung HCMC CE Complex (SEHC) in Ho Chi Minh City, Samsung Electronics Vietnam (SEV) and Samsung Display Vietnam (SDV) both in Bac Ninh province, and Samsung Electronics Vietnam Thai Nguyen (SEVT) in Thai Nguyen province, dropped 18.1% year-on-year to KRW38,690 billion ($29.18 billion).
Regarding sales, Samsung Electronics Vietnam Thai Nguyen recorded the worst year-on-year fall of 25.3%, dropping to KRW15,347 billion ($11.58 billion) in H1/2023 from KRW20,553 billion ($15.49 billion) H1/2022.
Samsung Electronics Vietnam's sales were down 14.5% to KRW10,034 billion ($7.57 billion). Sales of Samsung Display Vietnam declined 5.6% to KRW10,214 billion ($7.71 billion), while Samsung HCMC CE Complex decreased 12.9% to KRW3,096 billion ($2.34 billion).
In terms of profit, Samsung Electronics Vietnam Thai Nguyen also posted the worst year-on-year fall of 39.7% at KRW1,166 billion ($879.7 million) from KRW1,935 billion ($1.46 billion).
Samsung Electronics Vietnam's profit fell 2% to KRW910.2 billion ($696.5 million) from KRW928.4 billion ($700.2 million). Meanwhile, profits at Samsung Display Vietnam tripled to KRW570.5 billion ($430.3 million) and Samsung HCMC CE Complex inched up 7.6% to KRW352.2 billion ($265.6 million).
From its global operation, Samsung’s total revenue reached KRW123,751 billion ($93.34 billion), down 20.2% year-on-year. The figure included KRW86,429 billion ($65.16 billion) from its device experience (DX) division, KRW28,464 billion ($21.46 billion) from device solutions (DS), KRW13,097 billion ($9.88 billion) from displays (SDC), and KRW6,662 billion ($5.02 billion) from its in-vehicle technology business Harman.
Samsung Group sees 2023 as a significant milestone in Vietnam as it is the Korean giant’s 15th year of massive investments in the country, said Samsung Vietnam CEO Choi Joo Ho. He noted that this year marked an elevation of the importance of Vietnam not only as a manufacturing hub but also as a center for research and development.
Samsung inaugurated its largest Southeast Asia research and development center in Hanoi last December.
To date, the tech heavyweight has invested over $18 billion in Vietnam to become the largest single foreign investor in the country and has plans to add $2 billion.