HANOI--South Korea's Samsung Electronics Co. is considering
investing more than $1 billion in a third consumer electronics
factory in Vietnam, an increasingly important manufacturing base
for electronics companies.
The new factory will likely be built in a high-tech park in Ho
Chi Minh City, Le Manh Ha, the city's deputy chairman, told The
Wall Street Journal. Mr. Ha declined to provide a time frame for
construction of the plant, its size or what would be produced
there.
A senior official with Vietnam's Ministry of Planning and
Investment who declined to be named said Monday that the ministry
is studying the investment proposal from Samsung, before issuing a
license.
A spokesman for Samsung said plans for another plant in Vietnam
are "under review." He declined to elaborate.
Samsung's move to expand its production base in Vietnam comes as
the country is undergoing a swift economic transition. Exports of
smartphones and computer parts are beginning to overtake those of
coffee and garments. South Korea's LG Electronics Inc. and
Taiwan-based Foxconn Technology Co. are among other companies that
have either invested or announced plans to invest in the
country.
Vietnam is also becoming increasingly important as a
manufacturing base for electronics makers looking to take advantage
of a low-cost and well-educated workforce. With a population of 90
million people, the Southeast Asian country has also attracted
global tech companies such as chip maker Intel Corp. and camera
maker Canon Inc.
Exports of smartphones and electronics totaled $31.8 billion
last year, accounting for 24% of Vietnam's total exports, and an
increase of more than 50% from the previous year, government data
showed.
Samsung last year built a $2 billion complex in Thai Nguyen
province in northern Vietnam. It also has a $2.5 billion plant that
has been operational since 2009 in Bac Ninh province near Hanoi.
Both are used to manufacture mobile phones.
Min-Jeong Lee in Seoul contributed to this article.
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