Vietnamese workers at factory of Samsung Electronics Vietnam. (Source: www.thanhniennews.com)
Along with its fast expansion in Vietnam, Samsung Electronics Vietnam (SEV) now accounts for some 17.5% of Vietnam’s export turnover.
The South Korean conglomerate has invested a combined 14.2 billion USD in Vietnam, including two plants with a total investment of 7.5 billion USD in the northern provinces of Thai Nguyen and Bac Ninh, a 1.4-billion-USD electronics facility in Ho Chi Minh City that is under construction, and a 4-billion-USD display plant in Bac Ninh.
Lee Cheol Ku, deputy head of personnel department under Samsung Electronics Vietnam Thai Nguyen (SEVT), told local media earlier this month that two plants in Bac Ninh and Thai Nguyen province are employing 120,000 Vietnamese workers. The local workforce is set to reach 140,000 at the end of 2016.
Han Myoungsup, general director of Samsung Complex, has said the localization rate of made-in-Vietnam Samsung products has reached 36%. As many as 254 companies, including 119 Vietnam-based firms, are tier-1 providers for Samsung. The number of 100% Vietnamese providers is 41.
Samsung Electronics made its first investment in Vietnam in 1995 with its Samsung Vina Electronics plant in Ho Chi Minh City. The factory produces consumer and household electronics. In 2008 Samsung invested in its second project in the country, Samsung SEV Bac Ninh, producing primarily mobile phones.
The investment in this project was 670 million USD initially and has reached $2.5 billion after several expansions. Samsung then put 3.2 billion USD into its complex in Thai Nguyen, which has been in operation since March 2014, according to the Vietnam Investment Review.