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Samsung to increase investment in Vietnam to $20 billion this year

Over the past few years, Vietnam has emerged as Samsung’s key production site. And shortly after South Korea and Vietnam announced their plans to build a “comprehensive strategic partnership” earlier this week, news surfaced on a new multi-billion dollar investment by Samsung. Likewise, LG intends to increase its investment in the country.

Even though Samsung had to cut production a couple of times this year due to slow demand, the company manufactures roughly half of its smartphones in Vietnam. Samsung Electronics is the largest single foreign investor in the country, and the Vietnamese government has just revealed that Samsung intends to increase its investment in the country by $2 billion for a total of $20 billion.

Both Samsung and LG are spending more money in Vietnam

Although Samsung declined to comment on the investment, sources cited by Reuters say that the $2 billion investment will be made by the end of 2022. South Korea and Vietnam want to increase bilateral trade to $100 billion in 2023, up from $78 billion in 2022. The two countries aim to raise bilateral trade to $150 billion by 2023 and announced Monday that they strengthened their relations.

Earlier this year, Samsung’s TM Roh met with Vietnam’s Prime Minister to lay the groundwork for expanding production in the country. Samsung is reportedly opening a new R&D center in Vietnam, which will be operational by the end of this year or in 2023.

According to the latest news, LG, which no longer manufactures smartphones, also plans to increase investment in Vietnam and pour $4 more billion into smartphone camera production in the country. Vietnam will be LG’s primary hub for smartphone camera manufacturing.