Sales of Samsung Vietnam subsidiaries falls, profits grow in Jan-Sep

Samsung's four subsidiaries in Vietnam made a total profit of KRW5,474.2 billion ($4.15 billion) in the first nine months of 2023, up 8.3% year-on-year, according to the South Korean giant's interim business report.

In the same period, sales at 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 13.8% year-on-year to KRW61,800.5 billion ($46.84 billion).

Regarding sales, Samsung Electronics Vietnam Thai Nguyen (SEVT) recorded the highest figure with KRW24,108.2 billion ($18.27 billion), down 18.1% year-on-year.

Samsung Electronics Vietnam's (SEV) sales decreased 14.7% to KRW16,505.2 billion, while that of Samsung Display Vietnam (SDV) fell 8.6% to KRW16,903.5 billion and Samsung HCMC CE Complex (SEHC) inched down 4.4% to KRW4,738.6 billion.

With the figure, SEVT was the second-biggest cash earner for Samsung in the period, only behind Samsung Electronics America (SEA) with KRW10,216.4 billion ($7.74 billion)

In terms of profits, SEVT posted the highest figure as well with KRW2,347.2 billion ($1.78 billion), down 7.4% year-on-year, also the only one with worse performance. SEV’s profits went up 12.5% to KRW1,621.9 billion; while that of SDV skyrocketed 47.3% to KRW1,085.3 billion and SEHC grew 7.8% to KRW419.7 billion.

With the performance, SEVT’s profit was the third-highest figure among all Samsung subsidiaries globally, only after Singapore-based Samsung Asia Pte. Ltd. (SAPL) with KRW4,109 billion ($3.11 billion) and South Korea-based Samsung Display Co., Ltd. with KRW4,090.8 billion.

From its global operations, Samsung’s total revenue reached $146.94 billion in the nine-month period, down 17.5% year-on-year. It made a post-tax profit of $7.03 billion in that time, down 71.3%.

Samsung Group will continue to invest in Vietnam to retain its largest foreign investor status in the country over the next two to three decades, said chief financial officer of the Korean chaebol Park Hark Kyu at a meeting in October.

The Samsung CFO made the statement in response to Prime Minister Pham Minh Chinh’s suggestion that Samsung continue considering Vietnam a strategic production base, and a hub of research and development and production of key products for international markets.

In November, Samsung said it plans to invest $2 billion more in Vietnam, raising its total investment in the Southeast Asian nation to $22 billion, Samsung Vietnam CEO Choi Joo Ho told Nguyen Hong Son, vice head of the Central Economic Commission.

Samsung has so far invested $20 billion in Vietnam, employing over 100,000 people in Hanoi, Ho Chi Minh City, and the northern provinces of Bac Ninh and Thai Nguyen, Choi Joo Ho informed Deputy Prime Minister Tran Luu Quang in July.