Samsung invests $1.2 bln in Vietnam in 2023, to focus on innovation, training

Samsung invested $1.2 billion in Vietnam in 2023 as part of its continuous commitments to the country, said Samsung Vietnam CEO Choi Joo Ho.

The executive made the statement at a Tuesday meeting with Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc, affirming Samsung’s investments focused on the supporting industry, workforce training, cooperation with the National Innovation Center (NIC), and the establishment of smart factories.

As a result, Samsung’s Vietnamese tier-1 vendors rose to 306 as of end 2023, versus 25 in 2014. Samsung will continue to cooperate with the NIC in innovation, information technology, workforce training, and support for startups, the executive added.

He called on the Vietnamese government to further improve the business environment and provide more preferential policies for FDI businesses in the new situation.

For her part, Deputy Minister Ngoc suggested Samsung share experiences and help Vietnam with innovation, while affirming that the Ministry of Planning and Investment would establish new policies in line with the country’s international commitments and rules and ensure the benefits of all sides.

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.

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 with Prime Minister Pham Minh Chinh in October 2023.

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, at a meeting in November 2023.