Samsung Makes up 22.7% of Vietnam’s Export Turnover

Tuan Minh

15:33 09/01/2017

BizLIVE - Samsung Vietnam raked in $39.9 billion from exporting its products last year, rising 9.9% year-on-year.

Samsung Makes up 22.7% of Vietnam’s Export Turnover

A Samsung store in Hanoi. Photo: Internet

Samsung Vietnam pocketed $39.9 billion from shipping its products abroad in 2016, representing a rise of 9.9% from a year earlier, said Hyun Woo Bang, deputy general director of the company, said at conference of the Ministry of Industry and Trade in Hanoi last weekend.
With Vietnam’s export turnover reaching an estimated $175.9 billion last year, Samsung Vietnam’s exports accounted for 22.7% of the host country’s total exports, compared to 20% recorded in 2015.
Despite the Galaxy Note 7 scandal, the South Korean electronics giant’s two phone-manufacturing plants in Bac Ninh and Thai Nguyen provinces posted exports of $36.2 billion last year, up 10.3% year-on-year.
Sales of Samsung Vietnam topped $46.3 billion, according to the executive.
Hyun noted that the localization rate of Samsung-branded products increased to 51% from 35% a year earlier. The number of tier-1 suppliers for its plants surged to 20 in 2016 from four in 2015 and is poised to reach 29 in 2017.
The executive added that Samsung has disbursed up to $10.1 billion out of $14.8 billion the Korean conglomerate has committed to put in its projects in Vietnam. As many as 140,000 employees are working at Samsung’s facilities while only 190 are South Korean experts and engineers.
Hyun proposed the Vietnamese government loosen regulations on overtime and refrain the increase of labor cost in order to help maintain the competitive edge of foreign-invested companies operating in the country.