Samsung to make Vietnam its biggest display module hub: chairman

Samsung, already the biggest foreign investor in Vietnam, plans to invest more to transform Vietnam into its biggest manufacturing hub of display modules, executive chairman Lee Jae-yong said to Vietnamese Prime Minister Pham Minh Chinh.

At a meeting in Seoul on Tuesday, part of Chinh’s activities during his four-day official visit to South Korea until July 3, Lee Jae-yong said Samsung is commited to accompanying Vietnam per the country’s sustainable development goals, also in line with PM Chinh’s repeated the spirit of “harmonizing benefits, sharing risks” with investors.

The executive lauded the fruitful cooperation between Samsung and Vietnam. After 16 years, 310 Vietnamese firms now join Samsung’s supply chain and Samsung’s research and development (R&D) center in Hanoi now features 2,500 staff, he noted.

Samsung has so far invested $22.4 billion and currently employs 90,000 people in Vietnam, he added.

He also appreciated Vietnam’s decicated support to Samsung during the Covid-19 pandemic and other new policies to help investors in prioritized sectors.

For his part, PM Chinh hailed Samsung’s investment plans in Vietnam, especially breakthroughs for digital economy, green economy, and circular economy.

Backing up Samsung’s new investments, Chinh said Vietnam is negotiating to join new free trade agreements beyond its current portfolio of 19 FTAs, such as the Middle East, South America, and Africa. The move can help Samsung expand its market, Chinh emphasized.

The government chief also suggested Samsung improve the localization rate of its products in Vietnam; add more Vietnamese firms to its supply chain; and help Vietnam with workforce training, innovation, science-technology utilization, and R&D activities.

Chinh also repeated that Vietnam is building up a decree on investment supporting fund to maintain the country’s attractive investment environment and attract more high-tech investments, such as in semiconductors and artificial intelligence (AI). Another effort of the country is the preparation to soon issue a decree on direct power purchase agreement (DPPA).

Four Vietnamese subsidiaries of Samsung Electronics reported revenues of KRW81,146.7 billion ($60.83 billion) in 2023, down 11.83% year-on-year; and a combined after-tax profit of KRW5,263.1 billion ($3.95 billion), down 13.09%.

The four reported improvement in 2024, with combined revenues of KRW21,983.9 billion ($15.96 billion) in the first quarter of 2024, up 4.7% year-on-year, and post-tax profits of KRW1,583 billion ($1.15 billion), up 12.5%.

Samsung Electro-Mechanics (SEM) - the semiconductor and camera module arm of Samsung, and Samsung SDI - the battery arm of Samsung, earned combined revenue of $2.36 billion in Vietnam in 2023, according to their separate financial statements.