Samsung factories in Vietnam generate over US$70 billion in sales by 2022

Hai Yen

Mar 06, 2023 / 03:53 PM

Samsung has already invested $18 billion in Vietnam, and the group plans to increase the amount to $20 billion over the next two years.

Samsung's four manufacturing plants in Vietnam brought in nearly US$71 billion last year, making up 30% of the South Korean tech giant's global revenue.

Samsung Electronics Vietnam Thai Nguyen. Photo: Samsung Vietnam

In 2022, Samsung achieved a revenue of $234 billion, indicating a growth of over 8% compared to the previous year.

Among the contributors, four factories located in Vietnam accounted for approximately 30% of the total revenue, generating a profit of around $4.6 billion.

Samsung Electronics Vietnam Thai Nguyen (SEVT) maintained its position as the top-selling Samsung factory in Vietnam with sales of more than $28 billion, up 13% year-on-year. This resulted in SEVT's full-year profit of $2.1 billion, up 18% year-on-year.

SEVT is currently Samsung's largest smartphone factory worldwide, with the South Korean company investing in the northern province of Thai Nguyen in 2013 with an initial capital of $2 billion. Over time, the registered capital has increased to more than $7.5 billion.

As a result, Samsung's bases in Vietnam now account for more than 50% of its global mobile phone production.

Meanwhile, in 2021, both two Samsung facilities in Bac Ninh Province, Samsung Electronics (SEV) and Samsung Display (SDV) had similar revenues. However, in 2022, SDV's revenue increased more strongly than SEV's.

For 2022, SDV's revenue increased by 18.6% to $19.9 billion, while that of SEV rose by 9.6% to $18.2 billion.

Despite having higher revenue, SDV's profit is lower than SEV's. In the previous year, SEV's profit was $1.27 billion, while SDV's was $1 billion.

SEV, Samsung's first manufacturing complex in Vietnam, remains one of the Group's top manufacturing bases globally.

Last year, Samsung Electronics Ho Chi Minh (SEHC) generated more than $4.82 billion in revenue and made a profit of nearly $300 million.

In addition to its four production facilities, Samsung opened a research and development (R&D) center in Hanoi last year, investing $220 million in the project.

Samsung aims to make this R&D center its strategic base for large-scale research and development. At the center's opening ceremony last month, Choi Joo Ho, general director of Samsung Vietnam, expressed his ambition to make the new center in Hanoi one of the best of its kind in the world.

Samsung has already invested $18 billion in Vietnam, and the group plans to increase this investment to $20 billion.

Samsung Vice President Han Jong-hee stated that the group remains committed to Vietnam, with a focus on advancing research in artificial intelligence and big data in the coming time.

On December 23, 2022, Samsung Vietnam inaugurated the largest R&D Center in Southeast Asia in the presence of Prime Minister Pham Minh Chinh in western Hanoi.

The center, which cost US$220 million to build and covers an area of 11,603 square meters, will focus on research and development of mobile devices, including smartphones, tablet PCs, and hardware and software products.

Samsung aims to transform the facility into a world-class center by collaborating with technical universities and enhancing the research capabilities of Vietnamese engineers in areas such as artificial intelligence (AI), the Internet of Things (IoT), big data, 5G networks, and other product development fields.