Samsung Electronics to build US$3b smartphone plant in Vietnam
South Korea's Samsung Electronics has applied for a licence to invest US$3 billion in building a second smartphone factory in northern Vietnam, a government official said.
Samsung Electronics Vietnam plans to build the factory in Thai Nguyen province, where it opened a US$2 billion smartphone plant in March, said a senior official at the province's Planning and Investment Department who did not want to be identified.
"We are working on the project," said the official, confirming an earlier report by Dau Tu, a newspaper controlled by Vietnam's Planning and Investment Ministry. "There are still a few things to fix."
Samsung has been increasing production in Vietnam to reduce costs and better compete with the low-priced smartphones of Chinese rivals in particular.
The company's latest move would bring its total investment pledges in Vietnam this year to around US$11 billion, according to Dau Tu, whose controlling ministry oversees foreign investment.
Mobile phones and accessories became Vietnam's biggest cash earner last year, taking over textiles. In January-October this year, export revenue reached US$19.2 billion, or around 15 per cent of the country's total.
Samsung's first smartphone plant in Vietnam generated US$1.9 billion in export revenue during its first four months of operation.