Samsung’s Vietnam subsidiary troubled by troubles in North America, Middle East

Samsung Electronics Vietnam Thai Nguyen (SEVT), the South Korean giant’s biggest subsidiary in Vietnam, says economic turbulence in North America and the Middle East have led to below-expectation results.

Kim Jin Sung, deputy director of SEVT, told Thai Nguyen province’s authorities Wednesday that the company’s flagship phone Galaxy S24 launched in January 2024 had done well, but subsequent products have been impacted by the economic turbulence abroad. This has prompted SEVT to set a moderate 3-4% growth target for 2025, he added.

He asked the provincial authorities to extend further help with workforce training, infrastructure use fees and personnel for the semiconductor industry.

Thai Nguyen Chairman Nguyen Huy Dung said provincial authorities were willing to discuss issues with SEVT, even on a daily basis, via a digital connection. The province strives to promptly respond to all requests from foreign businesses, including SEVT, he added.

Dung noted a strong performance by SEVT would boost the province’s socioeconomic growth, so it was hoping the company would record good results in the last quarter of 2024.

Four Vietnamese subsidiaries of South Korean giant Samsung Electronics reported combined revenues of KRW42,017.3 billion ($31.38 billion) in the first half of 2024, up 8.6% year-on-year, but post-tax profits decreased 2% to KRW2,939.7 billion ($2.2 billion).

SEVT was the best performer. Its revenue rose 20.47% to KRW18,489 billion ($13.81 billion), while post-tax profit rose 30.17% to KRW1,518.3 billion ($1.13 billion). SEVT’s revenue was the second-highest among Samsung's subsidiaries globally, behind U.S.-based Samsung Electronics America, Inc.