Samsung's 2nd Factory in Vietnam

Samsung kicks off US$3.2 bil. project in Thai Nguyen

Samsung's 2nd Factory in VietnamTHAI NGUYEN, Mar 27, 2013. Samsung Electronics on Monday began work on a hi-tech complex worth US$3.2 billion in Thai Nguyen following the success of its cell phone factory in Bac Ninh.

The Bac Ninh factory worth US$670 million officially started operation in April 2009. In 2012, Samsung increased its investment in this factory to US$1.5 billion and decided to transform it into a technology complex.

This factory last year churned out some 100 million products, over 95% of which was exported to the EU, the Middle East, Russia and some Asian nations, bringing in some US$12.7 billion, or 11% of Vietnam’s total export turnover.

Samsung Thai Nguyen Hi-Tech Complex is developed on an area of 100 hectares in Yen Binh Industrial Park. The first plant in this complex is scheduled to start operation late this year and create jobs for 2,000 workers.

The plant specializes in production of mobile devices such as cell phones, smartphones and tablets with an annual capacity of over 100 million units, similar to the capacity of the Bac Ninh factory. It will also produce 1.5 million cameras a year.

The registered capital for the project in Thai Nguyen is US$2 billion. However, speaking at the groundbreaking ceremony on Monday, Prime Minister Nguyen Tan Dung informed the total cost of the project is US$3.2 billion.

The cell phone plant will cost US$2 billion, while US$1.2 billion will be spent on a factory specializing in production and assembly of microprocessors and integrated circuits.

The Bac Ninh factory worth US$670 million officially started operation in April 2009. In 2012, Samsung increased its investment in this factory to US$1.5 billion and decided to transform it into a technology complex.

This factory last year churned out some 100 million products, over 95% of which was exported to the EU, the Middle East, Russia and some Asian nations, bringing in some US$12.7 billion, or 11% of Vietnam’s total export turnover.

In addition to direct contributions to socioeconomic development in Vietnam, the projects of Samsung lure foreign investors into supporting industries in Vietnam. The factory in Bac Ninh has attracted 80 component manufacturers and suppliers and created jobs for over 16,000 workers, in addition to its own workforce of more than 30,000.

Similarly, the hi-tech complex in Thai Nguyen, when starting operation late this year, will continue to attract satellite companies and offer jobs for over 10,000 workers.