Samsung denies moving part of VN smartphone production to India
Samsung has rejected information that it plans to shift part of its smartphone production in Viet Nam to India.
Samsung has rejected information that it plans to shift part of its smartphone production in Viet Nam to India.
The statement came after India’s Economic Times on August 17 reported that Samsung “may shift a major part of its smartphone production to India from Viet Nam and other countries,” citing sources.
The report said the South Korean conglomerate had submitted estimates of making smartphones worth over US$40 billion in the next five years to the Indian government.
“Samsung is likely to diversify its production lines for making smartphones to India under the PLI (Production Linked Incentive) scheme and this will have an impact in its existing capabilities across various countries like Viet Nam,” the news website quoted a source “familiar with the matter” as saying.
A representative of Samsung Electronics Viet Nam on Wednesday told Viet Nam News that Samsung’s smartphone production plants in northern province of Bac Ninh and Thai Nguyen remain operational.
“Samsung Viet Nam is still playing a key role in the group’s global smartphone production,” the representative said.
Samsung has been Viet Nam’s biggest foreign investor with its total investment in the country amounting to $17.3 billion to date, a 26-fold increase from that of 2008, when its first cell phone plant, Samsung Electronics Viet Nam, worth $670 million opened in Bac Ninh Province.
Up to now, Samsung Viet Nam is running six plants and one research and development centre, with the two smartphone facilities in Bac Ninh and Thai Nguyen being Samsung’s largest smartphone plants in the global market.
Apart from this, Samsung Electronics HCM City Complex is the biggest electronics plant in Southeast Asia.
In a meeting with Samsung Viet Nam’s CEO Choi Joo Ho on August 11, Viet Nam’s Prime Minister Nguyen Xuan Phuc appreciated the results of production and business activities of Samsung in Vietnam, especially the implementation of commitments that Samsung has made to Viet Nam such as the commencement of the new Research and Development Centre (R&D) in Ha Noi.
This is considered the largest R&D centre in Southeast Asia with total investment of about $220 million. In early March, Samsung Viet Nam started construction of the R&D centre in the West of Ha Noi, showing Samsung’s long-term commitment to Viet Nam.
Phuc expressed hope that the country would continue to remain Samsung’s global strategic production hub, especially as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU – Viet Nam Free Trade Agreement (EVFTA) have become effective.
According to Samsung's statistics, around a half of Samsung's smartphones and tablets are produced in Viet Nam and exported to 128 countries and territories, including the US, Europe, Russia and Southeast Asia. — VNS
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