Record profits for the first nine months of 2017
Samsung Electronics Co., Ltd. has announced details of the first nine months of 2017 earnings of its subsidiaries. Samsung's companies in Vietnam continued to play an important role in the group’s profit structure.
Samsung Electronics Vietnam (SEVT), Samsung Display Vietnam (SDV) and Samsung Electronics HCMC CE Complex (SEHC) generated US$31.4 billion in revenue and US$4.6 billion in profit.
Compared to the first nine months of last year, total revenue and profit of these company grew by 35 per cent and 58 per cent per cent respectively. After first nine months of 2017, these company contributed US$26.3 billion to the record profit of Samsung.
Overcoming last year’s Note7 scandal, revenue of Samsung Bac Ninh, which specializes in manufacturing and assembly of phones, has grown US$12.5 billion in the first nine months of the year. Samsung Bac Ninh's profit even increased 50 per cent to US$1.53 billion.
Meanwhile, Samsung Thai Nguyen, a manufacturer of electronic components, continued to grow strongly with 27 per cent in revenue and 30 per cent in profit compared with the first nine months of 2016. For the first three quarters of 2017, this company recorded US$18.6 billion in revenue and US$2.32 billion in profit.
This amount makes Samsung Thai Nguyen become the highest earning company among Samsung's subsidiaries, surpassing Samsung Display Vietnam.
The reason why Samsung Thai Nguyen earned so high profit is that this Korean group transferred a part of its production to take advantage of the tax-free period in the first four years of operation.
Profit is almost double the disbursed investment capital
According to Samsung, the total profit from its four companies in Vietnam is US$19 billion for the period from 2010 to the first nine months of 2017. Approximately 60% of this profit comes from Samsung Bac Ninh (SEV) after 7 years of operation.
Currently, total registered capital of Samsung Electronics in Vietnam is over US$17 billion but at the beginning of 2017, the amount of capital disbursed by Samsung Vietnam was just over US$10 billion.