Vietnam has emerged as a key production site for Samsung in recent years. And, just days after South Korea and Vietnam announced plans to form a “comprehensive strategic partnership,” Samsung announced a new multibillion-dollar investment. Similarly, LG plans to increase its investment in the country.
Despite having to cut production twice this year due to low demand, Samsung manufactures roughly half of its smartphones in Vietnam. Samsung Electronics is the country’s largest single foreign investor, and the Vietnamese government recently announced that Samsung plans to increase its investment in the country by $2 billion, for a total of $20 billion.
Both Samsung and LG are increasing their investments in Vietnam.
Although Samsung declined to comment on the investment, sources cited by Reuters say it will be completed by the end of 2022. South Korea and Vietnam intend to boost bilateral trade to $100 billion by 2023, up from $78 billion in 2021. The two countries announced Monday that they have strengthened their relations in order to increase bilateral trade to $150 billion by 2023.
Samsung’s TM Roh met with Vietnam’s Prime Minister earlier this year to lay the groundwork for expanding production in the country. According to reports, Samsung will open a new R&D center in Vietnam by the end of this year or in 2023.
According to recent reports, LG, which no longer manufactures smartphones, intends to increase its investment in Vietnam and invest an additional $4 billion in the country’s smartphone camera production. LG’s primary smartphone camera manufacturing hub will be in Vietnam.
