Samsung puts $2 bln Vietnam phone plant into operation
Updated : 03/16/2014 15:05 GMT + 7
Korean electronics giant Samsung put their second manufacturing plant, costing US$2 billion, into operation in northern Vietnam this week, which is estimated to make as many as 9 million mobile phones per month, starting August this year.
The facility that produces handset devices and parts began running on Monday in Thai Nguyen Province, 70km from Hanoi.
The plant currently employs 5,000 workers and is expected to produce around two million cellphones per month in the next four months and make eight to nine million mobile phones per month from August this year, according to Shim Won Hwan, CEO of Samsung Electronics Vietnam (SEV).
The 67-hectare plant will create around 20,000 jobs, contribute tens of billions of U.S. dollars to Vietnam’s annual export turnover, and strengthen the development of the electronics support industry in the northern region, reported ICT News, a local newswire specializing in technology news.
The official operation of the Thai Nguyen plant will lure many satellite firms that produce mobile phone accessories and components and hopefully make the place the world’s most well-known mobile phone manufacturing facility, ICT News quoted an SEV representative as saying.
Samsung’s first Vietnam manufacturing plant is based in the northern province of Bac Ninh which manufactures around 70 percent of the firm’s smartphones on the global market, said Tran Duy Dong, deputy chief of the Agency for Economic Management under the Ministry of Planning and Investment.
Coming on stream in April 2009, the plant employed 30,000 people and made 13-15 million products per month, according to 2013 figures.
It posted a $12.7 billion export turnover in 2012, Nguyen Van Dao, deputy SEV CEO, said.
A third Samsung plant in Vietnam is scheduled to be inaugurated in August this year, which will send the Korean company’s total investment in the Southeast Asian nation to $5.7 billion.
The project, under construction at a cost of $1.2 billion, is a chip making factory sitting on a total area of 30 hectares at Yen Binh 1 Industrial Park in Thai Nguyen.