Vietnam subsidiaries contribute 33% to Samsung profit

By Minh Son   February 23, 2024 | 04:58 am PT
Samsung's four factories in Vietnam contributed 33% to the South Korean tech giant's $11.8 billion profit in 2023.

2023 was a challenging year for Samsung as its global revenue decreased by nearly 15% to $198.2 billion while its profit for the year was only a quarter of its 2022 profit.

While three of its four subsidiaries in Vietnam also experienced similar declines, they collectively accounted for 30.6% of the conglomerate’s revenue and 33% of its profit.

Samsung Thai Nguyen, the conglomerate’s best-performing factory in Vietnam, contributed nearly $23 billion in revenue and $1.7 billion in profit.

Compared to 2022, these figures decreased by 15% and 18%, respectively.

This facility is currently Samsung’s largest smartphone manufacturing plant in the world with a registered capital of over $7.5 billion.

The revenue of two facilities in Bac Ninh Province, Samsung Electronics Vietnam (SEV) and Samsung Display Vietnam (SDV), was $15 billion and $18 billion, respectively.

This marks declines of 15% and 6%, respectively.

Their profits both slid 10%, with SEV raking in $1.1 billion and SDV $800 million.

Samsung Electronics HCMC CE Complex, the conglomerate's facility in Ho Chi Minh City, earned $4.6 billion in revenue and $300 million in profit last year.

This is the only subsidiary that recorded a profit growth of 4.2%.

To date, Samsung has invested $18 billion in Vietnam and plans to raise this number to $20 billion.

Its CFO, Park Hark Kyu, said in a meeting with Prime Minister Pham Minh Chinh that the firm was committed to maintaining its position as the largest foreign investor in Vietnam for the next 20-30 years.

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