Samsung factories in Vietnam back in the black after losing quarter

By Anh Tu June 9, 2024 | 08:36 pm PT

Workers at Samsung's smartphone factory in northern Thai Nguyen Province. Photo courtesy of SEVT

Samsung’s four factories in Vietnam made a combined profit of US$1.2 billion last quarter after losing $181 million in the fourth quarter of 2023.

Samsung Thai Nguyen (SEVT), the Korean conglomerate’s best-performing plant in Vietnam, accounted for $707 million.

The two plants in Bac Ninh Province, Samsung Electronics Vietnam (SEV) and Samsung Display Vietnam (SDV), contributed $300 million and $123 million.

Samsung Electronics HCMC CE Complex (SEHC) was $40.7 million in the black.

They accounted for 23% of their parent’s quarterly profit.

Their revenues totaled $16.25 billion, up nearly $2 billion from the previous quarter.

In the final quarter of 2023 SEV, SEVT and SEHC reported combined losses of nearly $221 million, with SDV being the only profitable operation.

Last quarter Samsung achieved global revenues of 71.92 trillion won ($54 billion), up 13% year-on-year.

It said revenues increased thanks to the sales of the Galaxy S24 smartphone series and higher semiconductor prices.

The depreciation of the won against major currencies had a positive impact on profits, it said.

During a meeting with Prime Minister Pham Minh Chinh last month, the company’s CFO, Park Hark Kyu, said it plans to invest a further $1 billion annually in Vietnam to add to its existing $22 billion.

It also plans to increase its number of local suppliers and enhance training for its workforce, he said.

Since 2014 the number of Vietnamese businesses involved in Samsung's supply chain has increased 12-fold to 309 now.

It is the largest foreign direct investor in Vietnam, where it currently produces over 50% of all its mobile phones.