South Korea's Samsung just announced its 2017 financial report. It showed that this company continued to achieve impressive growth in Vietnam because both its revenue and profit increased roughly 50 per cent.
Specifically, four Samsung’s companies in Vietnam including Samsung Electronics Vietnam in Bac Ninh and Thai Nguyen provinces (SEV), Samsung Display Vietnam (SDV) and Samsung Electronics HCMC CE Complex (SEHC) generated US$61.7 billion in revenue and US$5.8 billion in net profit.
In fiscal year 2017, total revenue and net profit of the entire Samsung Group was estimated at US$211 billion and US$37.3 billion respectively. That means Samsung's revenue in Vietnam accounts for 30 per cent of its global revenue but profit from Vietnam’s factories was only equivalent to 16 per cent.
This is due to the fact that Samsung's main business in Vietnam is assembly plants located in Bac Ninh and Thai Nguyen province which have a large production scale but very thin margin.
Thai Nguyen continues to become a key center of Samsung's investment strategy. This group has initially invested US$3 billion in Thai Nguyen to receive incentives such as tax exemption for the first four years and 50 per cent reduction for the next nine years.
In Vietnam, Samsung has committed to invest more than US$17.3 billion including US$6.5 billion for Samsung Display and US$9.5 billion for SEV.