An investment license will be issued shortly for Samsung's new $3 billion factory in Thai Nguyen province.
Samsung has confirmed with VET that it will build a new $3 billion mobile phone factory in Vietnam.
The new facility is expected to be built next to its existing factory in northern Thai Nguyen province to assemble the latest mobile phone models and will employ more than 30,000 workers once in operation.
The investment incentives granted to the new factory were approved by the Prime Minister in late October and are the best available, with the condition set that research and development must be conducted. The investment license will be issued shortly to Samsung Electronics Vietnam Thai Nguyen (SEVT), the electronics giant told VET.
The $3 billion in total capital is expected to be disbursed within five years or perhaps even faster. Samsung is among the leading foreign-invested enterprises in terms of rapid disbursement of capital. Its existing SEVT plant has received approximately $1.5 billion in the 20 months since its breaking ground ceremony. With the new plant, Samsung Vietnam’s total registered capital now exceeds $11 billion.
The new factory is part of efforts by Samsung to reduce production costs, given Chinese rivals are rapidly emerging. Despite being the world’s largest phone manufacturer, Samsung’s revenue has nonetheless fallen amid a fiercely competitive environment, with many competitors now manufacturing low-cost phones. In recent years the South Korean giant has actively moved a number of production bases to Vietnam to cut costs. Samsung was also granted an investment license in July for a $1 billion display plant for mobile phones and tablets.