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Samsung Vietnam earns US$3.8 billion in profit in 2020

Samsung Vietnam remains a major production hub for Samsung globally. Photo: Samsung Vietnam

Vietnam remains a major production hub for Samsung, as revenue from Samsung Vietnam made up 30% of that of the South Korean tech giant in the global market last year.

Four major subsidiaries of Samsung in Vietnam earned a combined revenue of US$63.25 billion in 2020, down 4% year-on-year, resulting in a profit of US$3.8 billion.

Data: Samsung. Graphic: Ngoc Mai

The profit was also lower than the US$4.3 billion recorded in 2019, marking a decline in Samsung Vietnam’s profit for the second year in a row.

Samsung Electronics Vietnam Thai Nguyen (SEVT) posted the largest revenue among the four at US$24 billion, representing a decrease of 15%, and profit of US$1.8 billion, followed by Samsung Electronics Vietnam (SEV) US$16.9 billion in revenue, US$1.2 billion in profit and Samsung Display Vietnam (SDV) US$16.3 billion and US$500 million.

Samsung Electronics Ho Chi Minh (SEHC), another subsidiary of Samsung in Vietnam, recorded a surge of 25.3% year-on-year in revenue to US$5.3 billion, while the firm’s profit also rose by 25% to US$400 million.

Vietnam remained a major production hub for Samsung, as revenue from Samsung Vietnam made up 30% of that of the South Korean tech giant in the global market last year at US$212 billion, and 11% of profit at US$32.25 billion.

According to Samsung’s statistics, around 50% of Samsung’s smartphones and tablets are produced in Vietnam and exported to 128 countries and territories, including the US, Europe, Russia and Southeast Asia.

In the 2008 – 2018 period, Samsung increased its total investment in Vietnam from US$670 million to over US$17.3 billion, a 26-fold increase.

Samsung Vietnam is in the process of constructing its largest R&D center in Southeast Asia in the West of Hanoi with investment capital of US$220 million, scheduled to complete by late 2022. The company expected Vietnam would not only be its largest production hub, but also a strategic base for R&D.

Hanoitimes