Work begins on 2nd Samsung factory in Vietnam

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Construction on the Samsung's second factory in Vietnam broke ground in the northern province of Thai Nguyen on Monday, Dan Tri reported on the same day.

The $2-billion plant, set to become operational later this year, is first of two plants the South Korean company plans to build as part of a US$3.2-billion hi-tech complex on 100 hectares of land in Pho Yen District's Yen Binh Industrial Zone.

The hi-tech complex will be comprised of this plant, which will specialize in assembling hi-tech devices including cell phones and tablets, and another $1.2-billion plant, which will assemble microprocessors and integrated circuits, according to the news website.

The $2-billion plant is expected to make 100 million phones and other electronic devices every year and has been dubbed by local media as Samsung's largest mobile phone factory worldwide.

Samsung early last month signed a contract with Yen Binh Investment and Development JSC to lease 100 hectares of land for 49 years for its second hi-tech complex in Vietnam.

The first Samsung plant in Vietnam, which is currently its second largest handset factory worldwide after the Kumi plant in South Korea, opened in Yen Phong Industrial Zone in Bac Ninh in 2009 with an initial investment of $670 million and was upgraded into a complex last year bringing its total investment to $1.5 billion.

Samsung Electronics Vietnam, a Samsung subsidiary, exported over 100 million products last year, earning revenues of $12.7 billion, more than 11 percent of the Vietnam's total exports, media reports have said.

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Nguyen Van Dao, deputy CEO of Samsung Vina, a joint-venture between Samsung and the Ho Chi Minh City-based TIE Company, was quoted by Tuoi Tre as saying that Samsung chose Vietnam as "a major venue for Samsung's global business chain" not for its cheap labor, but "[its] stability and lack of threats related to race, religion or terrorism." 

Samsung will soon be seeking approval from authorities for the new complex's second plant, according to a VnExpress report.

Prime Minister Nguyen Tan Dung was quoted by VnExpress as saying at the ceremony that Samsung's hi-tech complex in Thai Nguyen is expected to bring Vietnam more than $20 billion in export turnover each year.

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