Samsung plans 2nd mobile-phone plant in Vietnam

TN News

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Samsung Electronics is set to build a second mobile-phone factory in Vietnam as part of plans to expand its global production, Vietnam News Agency reported Sunday.

The Korean giant's subsidiary Samsung Electronics Vietnam said the plant would come up in the northern province of Thai Nguyen or Hai Phong CIty.

But a Samsung official who wished to be unnamed told The Korea Times that the company was leaning towards the first location.

"Thai Nguyen's location provides great accessibility to Vietnam's major cities," he said.

The investment in the project is expected to be around US$700 million, he said, which will take the company's total investment in Vietnam to $2.2 billion by 2020.

The government said in a statement last month that Samsung would get similar tax incentives as it got for its first plant in the northern province of Bac Ninh  if the second plant meets the same criteria.

Among the incentives are corporate income tax exemption in the first four years of operation and half payment of taxes for nine following years.

"The additional investment decision is thanks to Vietnam's full support. We will increase the number of hires and investment contingent on prevailing conditions,'' the official said.

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The first plant, which opened at the Yen Phong Industrial Zone in 2009, annually produces 150 million products, or a fourth of the company's total output, according to The Korea Times. 

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