- The new factory will be built in Vietnam, specifically in Bac Ninh Province because it is close to another Samsung plant in the Yen Phong Industrial Park.
- With this new factory, Samsung’s total investment in Bac Ninh Province will go up by about 28%.
OUR TAKE
The new factory enhances Samsung’s commitment to cutting-edge OLED technology, which is crucial for modern displays, improving quality and innovation in consumer electronics. Establishing a major production facility in Vietnam helps Samsung diversify its manufacturing locations. It can reduce reliance on any single country and mitigate risks from geopolitical tensions.
-Lia Xu, BTW reporter
What happened
Samsung Display has announced a significant $1.8 billion investment to build a new OLED factory in Vietnam, enhancing its global manufacturing capabilities. This decision follows a meeting between Samsung Electronics Chairman Lee Jae-yong and Vietnamese Prime Minister Pham Minh Chinh. The memorandum of understanding was signed on September 22 with local authorities in Bac Ninh Province, where the factory will be located near an existing Samsung facility in the Yen Phong Industrial Park.
This investment will raise Samsung Group’s total investment in Bac Ninh Province by about 28%, increasing it from $6.5 billion to $8.3 billion. Chairman Lee emphasised the company’s commitment to Vietnam, highlighting its role as the largest foreign investor and exporter in the country. He noted that the display sector will see substantial investment, with plans for Vietnam to become a leading global production base in this field within three years.
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Why it’s important
By enhancing its OLED production capabilities, Samsung aims to maintain its leadership in display technology. OLED is crucial for modern devices, offering superior colour accuracy and energy efficiency, which can drive innovation in consumer electronics. With this latest investment, Samsung is set to further solidify its status as a leader in the OLED technology sector, contributing significantly to the local economy and reinforcing its role in Vietnam’s manufacturing landscape.
Besides, this investment will create thousands of jobs in Vietnam, stimulating local economies and contributing to economic growth. It reinforces Vietnam’s position as a significant player in the global manufacturing landscape. The investment reflects a deepening relationship between Samsung and Vietnam, showcasing mutual benefits and reinforcing Vietnam’s appeal as a destination for foreign direct investment. This agility can enhance its competitive edge in the marketplace.
