4 Samsung factories in Vietnam account for 30 per cent of the Group's global revenue
From the first quarter, Samsung’s four factories in Vietnam returned to profitability, recording $1.17 billion in profit.
Total revenue from Samsung's four main factories in Vietnam in the first half of this year increased by 8.6 per cent year-on-year, to $31.39 billion, accounting for approximately 30% of Samsung's total revenue globally.
The 4 Vietnam-based factories recorded a profit of approximately $2.2 billion in the six-month period, accounting for about 18% of the parent company's total profit.
Compared to a loss of around $180 million in the last quarter of last year, Samsung Vietnam has seen a significant improvement in both revenue and profit. From the first quarter, its four factories in Vietnam returned to profitability, thus recording $1.17 billion in profit in the first quarter of 2024.
According to Samsung's recently released audited financial report, in the first six months of this year, Samsung Thai Nguyen (SEVT) in northern Thai Nguyen province made the largest contribution to Samsung Vietnam's revenue and profit, with $13.81 billion in revenue and $1.13 billion in profit. These figures represent a 20.5 per cent and 30.2 per cent increase, respectively, compared to the same period last year.
Among Samsung's global units, this factory ranks second in terms of revenue, behind Samsung Electronics America (USA), and third in terms of profit, following Samsung Display Co., Ltd in South Korea and Samsung Asia Pte. Ltd. in Singapore.
Meanwhile, the Samsung Electronics Vietnam (SEV) factory in northern Bac Ninh province recorded a revenue of $8.18 billion and a profit of $692.84 million, representing year-ơn-year increases of 9.13 per cent and 1.9 per cent, respectively.
Also located in Bac Ninh, the Samsung Display Vietnam (SDV) factory was the only unit of the Group to experience declines in both revenue and profit. Its revenue dropped by 10.81 per cent to $6.8 billion, while profit fell by 33.44 per cent to $283.64 million.
The Samsung Electronics HCMC CE Complex (SEHC) in Ho Chi Minh City saw its profit decrease by more than two-thirds to $85.26 million, despite a 12.03 per cent increase in revenue, reaching $2.59 billion.
Other Samsung units in Vietnam, including Samsung Electro-Mechanics, which specializes in camera production, and Samsung SDI, which produces batteries, did not have figures reported in the Samsung Electronics' report.
Samsung Vietnam operates six major factories and a research and development center, with a total cumulative investment of $22.8 billion. In the first seven months of this year, Samsung Vietnam's export turnover reached $33.5 billion, a 5% increase compared to the same period last year, according to figures shared by Mr. Choi Joo Ho, General Director of Samsung Vietnam Complex, during his meeting with Deputy Prime Minister Tran Hong Ha last month.
Globally, Samsung recorded six-month revenue of $108.18 billion, an 18% increase, with profits of $12.3 billion, up by 503%.
