South Korean electronics giant Samsung plans to invest US$1 billion in a new project near its operational facility in the Vietnamese northern province of Bac Ninh, an official said Friday.
The Samsung Display project will produce displays for different devices, including television and smartphone screens, Nguyen Tien Nhuong, deputy chairman of the province, confirmed to Tuoi Tre (Youth) newspaper.
The provincial government has made a response to the South Korean company as to what incentives the new project may enjoy when investing in the province.
Samsung Display will be subject to a 10 percent corporate tax for 30 years starting from the year its business begins to make profits. The current corporate tax is 22 percent.
The company will be exempted from the corporate tax in the next four years, and the tax rate will be halved in the following nine years, should it meet the high-tech standards as committed in the investment application.
Earlier this month, Samsung also received approval from municipal authorities for a $1 billion project to set up an LCD production plant in Ho Chi Minh City.
The South Korean electronics giant will place its plant, which will produce LCD screens and related parts, inside the Saigon Hi-Tech Park in District 9, according to the city’s deputy chairman Le Manh Ha.
Samsung currently operates two billion-dollar facilities in Vietnam.
In 2009 the company inaugurated its mobile phone production plant Samsung Electronics VN in the northern province of Bac Ninh. The plant had an initial investment of $670 million, which eventually increased to $2.5 billion.
Four years later, the $2 billion Samsung Electronics Vietnam Thai Nguyen complex broke ground in Thai Nguyen, another northern province.
Around 43,000 employees are working at the Bac Ninh facility, and the Thai Nguyen complex is expected to attract up to 50,000 workers.
It is estimated that Samsung’s two plants in Vietnam will produce $35 billion worth of mobile phones this year.