Samsung expands Vietnam output with $560 Million Appliance Plant
Samsung expands Vietnam output with $560 Million Appliance Plant
Samsung Electronics Co. (005930) will build a $560 million plant in Ho Chi Minh City to manufacture televisions and home appliances, part of the company’s plan to make Vietnam a key part of its supply chain.
The world’s largest phone maker already has two plants in northern Vietnam, on which it’s spent $4.5 billion. The facility will occupy a 70-hectare site in the country’s economic hub, according to a statement from Samsung Vina Electronics.
“Vietnam is a strategic player in Samsung’s global supply chain,” the company said.
Vietnam is attracting manufacturers as they shift production from China amid rising costs and a shrinking labor force. Microsoft Corp.’s mobile-phone business acquired from Nokia Oyj is expanding its production in Vietnam, and LG Electronics (066570) Inc. will open a television and appliances factory.
Construction of the Samsung CE complex in Saigon Hi-Tech Park is slated to start early in 2015, with production commencing in mid-2016, according to the statement. The plant will employ about 4,000 to 5,000 people, Thanh Nien newspaper reported last month.
bloomberg
