[InsideVina=Hanoi, Jang Yeon-hwan] Samsung Electronics’ Vietnam division showed impressive performance in the first half of the year.
According to Samsung Electronics’ semi-annual report released last month, the consolidated results for January ~ June this year showed sales of about 146 trillion won, up 18% year-on-year, and operating profit and net profit of 17 trillion won and 16.6 trillion won, respectively, wiping away last year’s sluggishness.
Among them, the production subsidiary in Vietnam also showed a significant improvement in profitability, contributing to the improvement of the company’s performance.
Samsung Electronics operates four production subsidiaries in the country: Samsung Electronics Vietnam (SEV), Samsung Electronics Thai Nguyen (SEVT), Samsung Display Vietnam (SDV), and Samsung Electronics Ho Chi Minh Appliances Complex (SEHC).
Among them, the sales of the four production subsidiaries in Vietnam increased by 8.6% year-on-year to $31.39 billion, accounting for about 30% of the company’s sales, and the profit was $2.2 billion, accounting for about 18% of the total.
Specifically, SEVT, a smartphone factory in Thai Nguyen, posted sales of $13.81 billion and profit of $1.13 billion, up 20.5% and 30.2% year-on-year, respectively, the largest among the four manufacturing subsidiaries. SEVT ranked second in terms of revenue, behind Samsung Electronics America.
This was followed by SEVs, which posted revenue of $8.18 billion and profit of $692.84 million, up 9.1 percent and 1.9 percent, respectively. SDV, on the other hand, saw revenue decline by 10.8% to $6.8 billion and profit by 33.4% to $283.64. Ho Chi Minh City-based SEHC saw its revenue rise more than 12% to $2.59 billion, but its profit fell significantly to $85.26 million.
Samsung Electronics began its official investment in Vietnam in 2008 with the construction of a mobile phone factory in the northern province of Bac Ninh, and has since continued to invest in Thai Nguyen, Hanoi, and Ho Chi Minh City, with a cumulative investment of $22.8 billion to date.
Currently, Samsung Vietnam is the largest FDI (Foreign Direct Investment) company in Vietnam, with 4 production subsidiaries, 1 sales subsidiary and 1 R&D center, as well as Samsung Electro-Mechanics Vietnam (SEMV) and Samsung SDI Vietnam (SDIV).
Through July this year, exports increased by 5% year-on-year to US$33.5 billion, accounting for 14.8% of Vietnam’s total exports.
Since the opening of the Hanoi R&D Center at the end of 2022, Samsung Vietnam has continued to support local companies to strengthen their capabilities, contributing to the development of Vietnam’s industry, the improvement of localization rates, and the production and supply chain. With this support, the number of local tier 1 and tier 2 suppliers participating in Samsung’s global supply chain has increased 12 times in 10 years, from 25 in 2014 to 309 today.
In addition, Samsung Vietnam continued its social contribution activities by donating VND10 billion ($406,000) through the Central Committee of the Fatherland Front of Vietnam to support the Vietnamese people affected by Typhoon Yagi on the 17th.