JavaScript is off. Please enable to view full site.

Samsung, LG plan multi-billion-dollar additional investment in Vietnam

Samsung, LG plan multi-billion-dollar additional investment in Vietnam

Tuesday, December 06, 2022, 23:01 GMT+7
Samsung, LG plan multi-billion-dollar additional investment in Vietnam
The logo of South Korean multinational electronics company LG is displayed at the Collision conference in Toronto, Ontario, Canada June 23, 2022. Picture taken June 23, 2022. Photo: Reuters

South Korean electronics giants Samsung and LG plan to pour billions of dollars of additional investment into Vietnam, state media reports and the Vietnamese government said on Tuesday.

The announcement comes after Samsung cut smartphone production in Vietnam twice this year in response to weaker global demand.

Samsung Electronics, the largest single foreign investor in Vietnam, will invest $2 billion more in the Southeast Asian country, raising its total to $20 billion, Vietnamese state media said.

Samsung has for years produced about half of its smartphones in Vietnam and accounts for nearly a fifth of the country's overall exports.

The additional investment will further firm up Vietnam as Samsung's key production site, reported Vietnam News Agency, following a meeting on Tuesday in Seoul between Vietnamese President Nguyen Xuan Phuc and the company's chief executive Han Jong-hee.

Samsung did not immediately respond to a request for comment.

Separately, the Vietnamese government said in a statement that LG would also invest $4 billion more in the country to make it a smartphone camera production hub.

The state media report and the government statement did not provide further details on the investment by the two companies.

LG, which has so far invested $5.3 billion in Vietnam to make such products as electronics home appliances, cameras and car parts, did not immediately respond to a request for comment.

The announcements came as Vietnam and South Korea said on Tuesday they upgraded their relations to "comprehensive strategic partnership", which Vietnam has so far established only with China, Russia and India.

The two countries aim to raise bilateral trade to $100 billion next year, and to $150 billion a year by 2030, up from $78 billion last year.

Vietnam has over the last decade emerged as one of the most attractive production hubs for electronics companies, but weakening global demand has prompted production cuts this year.

South Korean electronics giants Samsung and LG plan to pour billions of dollars of additional investment into Vietnam, state media reports and the Vietnamese government said on Tuesday.

The announcement comes after Samsung cut smartphone production in Vietnam twice this year in response to weaker global demand.

Samsung Electronics, the largest single foreign investor in Vietnam, will invest $2 billion more in the Southeast Asian country, raising its total to $20 billion, Vietnamese state media said.

Samsung has for years produced about half of its smartphones in Vietnam and accounts for nearly a fifth of the country's overall exports.

The additional investment will further firm up Vietnam as Samsung's key production site, reported Vietnam News Agency, following a meeting on Tuesday in Seoul between Vietnamese President Nguyen Xuan Phuc and the company's chief executive Han Jong-hee.

Samsung did not immediately respond to a request for comment.

Separately, the Vietnamese government said in a statement that LG would also invest $4 billion more in the country to make it a smartphone camera production hub.

The state media report and the government statement did not provide further details on the investment by the two companies.

LG, which has so far invested $5.3 billion in Vietnam to make such products as electronics home appliances, cameras and car parts, did not immediately respond to a request for comment.

The announcements came as Vietnam and South Korea said on Tuesday they upgraded their relations to "comprehensive strategic partnership", which Vietnam has so far established only with China, Russia and India.

The two countries aim to raise bilateral trade to $100 billion next year, and to $150 billion a year by 2030, up from $78 billion last year.

Vietnam has over the last decade emerged as one of the most attractive production hubs for electronics companies, but weakening global demand has prompted production cuts this year.

Reuters

More

Read more

;

Photos

VIDEOS

‘Taste of Australia’ gala dinner held in Ho Chi Minh City after 2-year hiatus

Taste of Australia Gala Reception has returned to the Park Hyatt Hotel in Ho Chi Minh City's District 1 after a two-year hiatus due to the COVID-19 pandemic

Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Vietnam’s Mekong Delta celebrates spring with ‘hat boi’ performances

The art form is so popular that it attracts people from all ages in the Mekong Delta

Vietnamese youngster travels back in time with clay miniatures

Each work is a scene caught by Dung and kept in his memories through his journeys across Vietnam

Latest news

Missing radioactive capsule found in Western Australia

Australian authorities on Wednesday found a radioactive capsule that was lost in the vast Outback after nearly a week-long search along a 1,400 km (870-mile) stretch of highway, an emergency services official said