Rumors regarding Samsung moving its smartphone production lines from Vietnam to India are unfounded, according to Samsung Vietnam CEO Choi Joo Ho.
"The products manufactured in India are mainly sold in the Indian market, with some exported to African countries," the executive told authorities of Thai Nguyen province, home to one of the giant's Vietnam factories, at a meeting on Friday.
"Our made-in-Vietnam products are exported to 128 countries. Thus, the output of Samsung factories in Vietnam is not affected by the output in India," he added.
Construction of Samsung Electronics Vietnam Thai Nguyen (SEVT) started in March 2013, with an initial investment capital of $2 billion. After one year, the figure rose to $5 billion.
Most recently, the giant injected nearly $1.19 billion into the Thai Nguyen factory, bringing the group's total investment in the northern province to more than $7.5 billion.
Samsung is preparing for the trial production of a flip-chip ball grid array at its factory in Thai Nguyen in May, with commercial production slated to begin in November this year.
Thai Nguyen leaders said they highly appreciated Samsung's presence which has helped the province's industrial and export values bcome one of the leading localities in the country.
Samsung’s four subsidiaries in Vietnam reported after-tax profits of KRW6,055.9 billion ($4.67 billion) in 2022, up 16.28% year-on-year, according to the group's financial statement.
On a global scale, Samsung Electronics earned a post-tax profit of $43.1 billion last year, up 39.46% year-on-year. Its revenue expanded 8.09% to $234.08 billion. This means the after-tax profit that Samsung earned in Vietnam accounted for nearly 11% of the global figure.
The four companies, 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, recorded revenues of KRW92.032 trillion ($71.02 billion) in 2022, up 12.18% year-on-year.
In Vietnam, Samsung Electronics operates smartphone, TV, display panel, and home appliances factories. The country’s Samsung smartphone factories are responsible for producing almost half of the company’s Galaxy smartphones.
To date, Samsung has invested over $18 billion in Vietnam to become the largest single foreign investor, and has plans to add $2 billion.
The Korean tech giant wants to turn its December-launched Vietnam R&D center with $220 million in investment into a leading global hub, Samsung Vietnam CEO Choi Joo Ho said last month.
Honda, C.P., Samsung, Heineken, Unilever, Toyota, and Suntory Pepsico were the top foreign-invested tax payers in Vietnam in 2021, according to the General Department of Taxation.