South Korean tech giants Samsung and LG plan to spend billions of dollars to further invest in Vietnam's industry. It is reported by Reuters with reference to the Vietnamese government. It is noteworthy that the announcement follows Samsung's reduction of smartphone production in Vietnam for the second time this year due to a global decline in smartphone interest.
Samsung Electronics is the largest foreign individual investor in Vietnam. According to local authorities, the company will increase investments from $18 billion to $20 billion. The company itself does not comment on the information, but a source “familiar with the matter” has already said that investments will be completed before the end of this year.
It is known that the company has been producing half of its smartphones in Vietnam for years and its products account for about 20% of Vietnamese exports. The additional investment will help strengthen the company's key manufacturing site, according to a meeting between a delegation of Vietnamese politicians led by President Nguyen Xuan Phuc and South Korean officials, as well as Samsung executives. Earlier it was reported that the Vietnamese authorities are trying to persuade Samsung to build an enterprise for the production of chips.
Separately, the Vietnamese government said that LG also intends to increase investments by $4 billion in order to turn Vietnam into a hub for the production of smartphone cameras. LG has already invested $ 5.3 billion in the local economy - here the company produces household appliances, cameras and components for cars.