Samsung Vietnam subsidiaries make $1.1 bln profit in Q1

Samsung's four subsidiaries in Vietnam reaped a total profit of KRW1,407.5 billion ($1.08 billion) in the first quarter of this year, down 18.4% year-on-year, according to the South Korean tech giant's interim business report.

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 revenue of KRW20,999.3 billion ($16.13 billion), down 12.6% year-on-year.

Regarding profit, SEVT posted its worst year-on-year fall of 69.3%, dropping to KRW296 billion ($227.43 million) in Q1/2023. SEHC also fell to KRW198.5 billion ($152.52 million) in Q1/2023.

SEV and SDV, both in the northern province of Bac Ninh, recorded improved profits. SEV's profit increased 7.9% year-on-year to KRW462.8 billion ($355.6 million), while SDV's figure went up 242% to KRW450.1 billion ($345.8 million).

In terms of revenue, all four subsidiaries posted negative figures. SEHC's revenue plummeted 23.3% year-on-year to KRW1,497.4 billion ($1.15 billion). SEVT's revenue reached KRW8,617.6 billion ($6.62 billion), down 18.5%.

SEV's revenue inched down 2.1% year-on-year to KRW5,696.3 billion ($4.38 billion), while SDV's figure dropped 8.5% to KRW5,188.1 billion ($3.99 billion).

For its global operations in Q1/2023, Samsung recorded total revenue of KRW 63,745.4 billion ($48.97 billion), a decrease of 18.0% year-on-year. Major customers included Apple, AT&T, Deutsche Telekom, Qualcomm, and Verizon. In addition to its headquarters in South Korea, Samsung has 230 subsidiaries across the world, including 34 in its home country, 30 in China, and 32 in Asia (excluding China).

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.

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 here and has plans to add $2 billion.

South Korean tech giant 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. They recorded revenue of KRW92,031.9 billion ($71.02 billion) last year, up 12.18% year-on-year.

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.