Vietnam to get a second Samsung smartphone plant.
The Vietnamese government has approved Samsung Electronics to build its second smartphone plant in the country. The company will invest $3 billion to construct a manufacturing facility in Thai Nguyen province, north of Hanoi, where its first plant was established in March 2013.
The tech giant had previously invested $2billion in its first plant, which now has 16,000 employees and doles out 120 million low-budget phones annually for developing markets. Owing to this investment, Samsung should be able to get tax benefits for its expansion in the region.
Vietnam has had a booming mobile phone manufacturing industry this year, with exports touching $19 billion and beyond between January and October 2014. This accounts for nearly 15 percent of its total outbound shipments.
Samsung’s subsidiary Samsung Display had also received approval from Vietnam in July 2013 to invest $1 billion to build a display module plant that makes large displays for televisions and mobile devices in the country.
The firm had revealed in October 2014 that it would be building a $560m factory in Ho Chi Minh City, where it it will manufacture TVs, washing machines and air conditioners. The South Korean company is also expanding its Samsung Electro-Mechanics division in Vietnam.
Other tech firms that have laid down their manufacturing facilities in the country include Intel, LG, Panasonic and Microsoft’s handset unit over the past few years.
Photo Credits: vir.com.vn