Samsung To Build $3 Billion Dollar Smartphone Manufacturing Plant In Vietnam
Samsung has shown softening smartphone dominance, at least from a financial performance perspective, in recent quarters. That's not slowing anything down back at headquarters, however, as Samsung realizes that the only way to counter that is to simply grow and take more of the market, even if it's against the odds. Samsung has reportedly applied for a license that would enable it to "invest $3 billion in building a second smartphone factory in northern Vietnam," with the Thai Nguyen province set to gain its second Samsung shop. (The company opened a $2 billion facility there in March.)
The news was handed down by a government reporters, though Samsung itself did go so far as to confirm that it is presently "in discussions with Vietnam's government to invest up to $3 billion in its handset business." The reason for shifting production to Vietnam? To reduce overall costs and "better compete with the low-priced smartphones of Chinese rivals in particular."
Overall, assuming this passes, Samsung's investment in Vietnam would soar past $11 billion for the year. Investing heavily in mobile makes sense, though, given that it's such a huge part of the company's overall revenue pie. To put it in perspective, the $2 billion plant that opened in March generated a staggering $1.9 billion in export revenue during just the first four months of its operation.
The news was handed down by a government reporters, though Samsung itself did go so far as to confirm that it is presently "in discussions with Vietnam's government to invest up to $3 billion in its handset business." The reason for shifting production to Vietnam? To reduce overall costs and "better compete with the low-priced smartphones of Chinese rivals in particular."
Overall, assuming this passes, Samsung's investment in Vietnam would soar past $11 billion for the year. Investing heavily in mobile makes sense, though, given that it's such a huge part of the company's overall revenue pie. To put it in perspective, the $2 billion plant that opened in March generated a staggering $1.9 billion in export revenue during just the first four months of its operation.
