Vietnam subsidiaries named major contributors to US$ billion profits of Samsung Electronics
By Lam Dien
September 14, 2017 | 03:27 PM GMT+7
Net profit at the four Samsung subsidiaries in Vietnam reached VND70.7 trillion (US$3.2 billion) in the first half of the year 2017.
The Samsung Vietnam subsidiaries contribute over one fifth of the global corporate's profit. Photo: TL
According to the report of Samsung Electronics (Korea), its revenue of the first 6 months of 2017 reached US$97.7 billion, profit after tax of US$16 billion.
The South Korean technology giant’s financial report showed that Samsung Electronics Vietnam in northern Bac Ninh province (Samsung Bac Ninh) and Samsung Electronics Vietnam Thai Nguyen in northern Thai Nguyen province (Samsung Thai Nguyen) are still the two most profitable subsidiaries of Samsung Electronics globally.
The business results of the four Samsung Vietnam subsidiaries iin the first half of 2017. Source: Financial statement of Samsung Electronics.
However, Samsung Bac Ninh saw a decline in its business result. Specifically, in the period, the company, specializing in telephone assembly, recorded a revenue of 9,168 trillion won (VND 183 trillion; US$8 billion), a decrease of 16 per cent over the same period of 2016. Its profit reached more than 1,022 billion won (VND20,500 billion), down sharply by 26 per cent.
In 2016, Samsung Bac Ninh reported revenue of 19,426 billion won (VND408,147 billion; US$18 billion) and net profit of nearly VND43,000 billion (US$1.8 billion), an increase of 5% yoy.
Samsung Thai Nguyen, meanwhile, recorded revenue of 14,507 trillion won (VND290,000 billion), up 32 per cent yoy; its net profit reached 1,922 trillion won (VND38,500 billion), up 37 per cent. The company recorded the highest revenue and profit of the global Samsung Electronics system.
The business results of the four Samsung subsidiaries in Vietnam. Source: Financial Statements of Samsung Electronics
In the year 2016, Samsung Thai Nguyen gained 23,564 trillion won in revenue (VND495,074 billion), an increase of 21.6 per cent yoy. Its profit in 2016 also recorded a remarkable growth of over 65%, reaching nearly VND55,500 billion. Its profit has therefore more than tripled since 2014.
Another subsidiary of Samsung Electronics in Vietnam, Samsung Display Vietnam (SDV), also jumped threefold in its revenue from the same period last year to 5,638 billion won (VND113 trillion). Its net profit in the first half of 2017 reached 480 billion won (VND9,600 billion), compared to a loss of 33 billion won in the same period last year.
Samsung Display officially received an investment license on February 24 for a $2.5 billion expansion project at Bac Ninh province’s Yen Phong Industrial Park.
Samsung Electronics HCMC CE Complex (SEHC), which manufactures consumer electronics products, posted revenue and profit in the first six months of 2017 at 1,774 trillion won (VND35.5 trillion) and 106 billion won (VND2,100 billion) respectively.
In total, in the first half of 2017, the four subsidiaries of Samsung Electronics in Vietnam recorded revenue of about VND620,000 billion (US$ 27 billion), after-tax profit of VND70,700 billion (US$3.2 billion), contributing 28% and 20% respectively to the revenue and profit of the corporation.
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