The South Korean multinational technology giant will officially operate its Samsung Electronics HCMC CE Complex (SEHC) in the middle of this year, making Vietnam one of the manufacturing hubs of Samsung-brand TVs and home appliances in the globe.
The complex, whose construction started in the Saigon Hi-Tech Park (SHTP) in May 2015, is at the trial run for commercial operation, the Ministry of Planning and Investment-run Dau Tu (Investment) newspaper reported.
The complex will churn out not only television sets, but also other home appliances such as washing machines, refrigerators, and vacuum cleaners in 2016 and early 2017. TVs produced at the complex will be shipped to some 30 countries while other products will be sold to 40 countries.
Once completed, SEHC will become one of the four largest home appliance plants of Samsung globally, said Lee Sangsu, CEO of Samsung Electronics HCMC CE Co.
To prepare for the operation of the complex, Samsung and SHTP have been actively seeking for suppliers, both in Vietnam and overseas. Contract producers have invested some $300 million in projects to provide components for SEHC.
In addition, Samsung has supported Vietnamese firms in lifting their capacities so that they can become suppliers for Samsung.
Samsung Electronics Vietnam has poured over $14 billion in manufacturing facilities in Vietnam. Its plants in the northern provinces of Bac Ninh and Thai Nguyen provide some 33% of mobile phones that Samsung sells globally.
According to Business Korea, Samsung Electronics Vietnam’s sales and net profit skyrocketed by 2,000% and 1,068% to 18 trillion won ($15.07 billion) and two trillion won ($1.67 billion) in 2015, respectively.
Samsung Electronics Vietnam’s exports reached $32.8 billion last year, accounting for one fifth of Vietnam’s total export revenue.