The US$3 billion project will be located near the company’s first factory which came into operation in March this year with the total investment capital of US$2 billion.
The two factories are expected to create jobs for around 100,000 local residents.
Samsung has become the biggest foreign investor in Viet Nam after pouring up to US$11.2 billion in the Southeast Asian country. Its export value accounts for approximately 20% of the country’s total export figure.
Samsung, the world’s largest smartphone maker, is leading a wave of technology companies turning to Vietnam’s young workforce to assemble their gadgets. The growing difficulties of operating in China, as well as Vietnam’s low-cost labor and generous tax benefits, are attracting technology companies, said Lam Nguyen, Ho Chi Minh City-based country director at International Data Corp.
“They now see a lot of risk in China because they are competing with Chinese vendors,” he said by phone. “They have become fierce competitors. Vietnam is in a unique position. You have a motivated workforce and in terms of labor costs, they are cheaper than China, cheaper than Thailand.”
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Samsung to build second factory in Thai Nguyen, VIR, Nov 11, 2014