Business
Samsung Vietnam reports rising export revenue in 2016 despite Note 7 incident
Total export revenue of Samsung Electronics Vietnam Company Limited (SEV) is expected to reach 36.4 billion U.S. dollars in 2016, up 9.3 percent year-on-year, despite the Galaxy Note 7 incident, SEV announced.
The announcement was made to respond to local media that reported SEV's loss in the third quarter of 2016.
According to SEV, the two Samsung factories in Vietnam's northern Thai Nguyen and Bac Ninh provinces registered export revenue of over 35 billion U.S. dollars this year, up 7 percent year-on-year. Meanwhile, the export revenue of Samsung Electronics HCMC CE Complex in southern Ho Chi Minh City also witnessed an increase of 180 percent year-on-year to hit around 1.4 billion U.S. dollars.
The incident caused SEV a loss of around 3 trillion Vietnamese dong (134.53 million U.S. dollars) in the third quarter of 2016 and a decrease of 32 trillion Vietnamese dong (1.43 billion U.S. dollars) in revenue compared to the second quarter, said SEV.
However, the impact of the Note 7 incident is "in short term" and that mainly affected the SEV factory in Bac Ninh where Note 7 products were made, said SEV, adding that the incident made "minor" impact on SEV's business, production situation and export revenue in 2016.
As soon as stopping production of Note 7, the two factories in Bac Ninh and Thai Nguyen have adjusted production lines to produce other smart phones and tablets, said the South Korean manufacturer.
According to SEV, the two Samsung factories in Vietnam's northern Thai Nguyen and Bac Ninh provinces registered export revenue of over 35 billion U.S. dollars this year, up 7 percent year-on-year. Meanwhile, the export revenue of Samsung Electronics HCMC CE Complex in southern Ho Chi Minh City also witnessed an increase of 180 percent year-on-year to hit around 1.4 billion U.S. dollars.
Inside Samsung factory in Vietnam.
Earlier this year, SEV has to recall a total of 12,633 its Note 7 products across the country due to their battery fault that might cause fire or explosion.The incident caused SEV a loss of around 3 trillion Vietnamese dong (134.53 million U.S. dollars) in the third quarter of 2016 and a decrease of 32 trillion Vietnamese dong (1.43 billion U.S. dollars) in revenue compared to the second quarter, said SEV.
However, the impact of the Note 7 incident is "in short term" and that mainly affected the SEV factory in Bac Ninh where Note 7 products were made, said SEV, adding that the incident made "minor" impact on SEV's business, production situation and export revenue in 2016.
As soon as stopping production of Note 7, the two factories in Bac Ninh and Thai Nguyen have adjusted production lines to produce other smart phones and tablets, said the South Korean manufacturer.
