Samsung's factories in Vietnam contribute over $70B to total revenue

The South Korean conglomerate's four factories in Vietnam contributed roughly 30% of Samsung's total revenue for the year, with Samsung Thai Nguyen (SEVT) being the highest revenue-generating factory, contributing nearly $28 billion, a 13% increase compared to the previous year, according to consolidated financial statements of Samsung Electronics CO., LTD in 2022.

Samsung Display (SDV) in Bac Ninh province also gained attention when it surpassed SEVT in Q4/2022, the overall revenue for 2022 was approximately $20 billion. Its net profit was about $1 billion.

The other factory in Bac Ninh, Samsung Electronics (SEV), recorded over $18.5 billion in revenue and over $1.2 billion in profit. As for the facility in Ho Chi Minh City - Samsung Electronics HCMC CE Complex (SEHC), the conglomerate earned nearly $5 billion in revenue. Its profit decreased slightly, to about $300 million.

Samsung's success in Vietnam is reflected in the company's 2022 audited financial report, which showed an increase of more than 8% in revenue compared to the previous year, reaching over $234 billion, with a net profit of over $43 billion, a 39% increase. 

Despite their significant contribution to revenue, the profits of Samsung's factories in Vietnam only amounted to about $4.6 billion, equivalent to more than 10% of the total profit for the conglomerate.

In response to this success, Samsung's Vice Chairman Han Jong-hee announced plans to increase the total investment capital in Vietnam to $20 billion, up from the current level of $18 billion, with a focus on artificial intelligence and big data. 

Samsung also opened its largest Research and Development (R&D) Center in Southeast Asia in Hanoi, with a focus on research in artificial intelligence, 5G networks, big data, and mobile products such as smartphones and tablets.

Samsung's success in Vietnam is not unique, as other Korean conglomerates such as LG, Deawoo, Hyundai Motor, and GS E&C have also committed to increasing investment in Vietnam. 

LG's Vice Chairman and CEO, Mr. Kwon Bong Seok, expressed his desire to make Vietnam the center for producing LG's smartphone cameras in the future. 

Meanwhile, Lotte Group has also invested nearly $5 billion in Vietnam and considers it as the third-largest market after Korea and Japan.

Source: ZingNews