Samsung Electronics plans to spend up to US$3 billion to build its second smartphone factory in Vietnam, revealed a government official.
The South Korean company wants to build the factory in the Thai Nguyen province, which is also home to its US$2 billion smartphone plant.
“We are working on the project,” said a senior official at the province’s Planning and Investment Department. “There are still a few things to fix.”
The official wanted to remain anonymous because he was not authorised to discuss the matter with the media.
Meanwhile, a Samsung spokeswoman confirmed that the company is indeed in talks with Vietnam to invest as much as US$3 billion in its smartphone business. However, she noted that the schedule for spending as well as the exact amount to be spent are yet to be decided.
The South Korean phone maker has been ramping up production in Vietnam in order to reduce costs and compete with Chinese rivals who offer low-priced smartphones.
In July, Samsung Display Co Ltd, a subsidiary of the electronics giant, said it obtained regulatory approval to construct a US$1 billion display module assembly plant in Vietnam.
The company’s latest move would see its total investment in the country increase to about US$11 billion, according to a report in Dau Tu, a newspaper controlled by the Planning and Investment Ministry of Vietnam.
In 2013, mobile phones and accessories emerged as the country’s largest cash earner, surpassing textiles. From January to October this year, Vietnam’s export revenue hit US$19.2 billion, or about 15 per cent of the country’s overall export revenue.
Built with a US$ 2 billion investment, Samsung’s first smartphone factory in Vietnam posted US$1.9 billion in export revenue during its first four months of operation, said the Thai Nguyen provincial government.