Samsung plans second factory in Viet Nam

Samsung plans second factory in Viet Nam

Samsung Electronics plans to build a US$700 million handset factory in Viet Nam to boost manufacturing capacity globally, according to the company.

Samsung Electronics Viet Nam (SEV) is considering two northern locations: Thai Nguyen Province or the northern port city of Hai Phong.

Samsung Electronics is running a plant at the Yen Phong Industrial Zone in the northern province of Bac Ninh, producing mobile phones, tablets and electronics parts. Since 2009, it has been leading Samsung's overseas handset plants in term of production manufacturing: 150 million products per year which accounts for one-fourth of the company's annual output.

Recently, authorities in Bac Ninh Province called on the Government to provide additional tax breaks and incentives to its factory in Bac Ninh Province.

According to Truong Tien Yen, head of the province Party Committee Office, SEV would face difficulties in implementing its expansion plans if it did not get more Government support, despite already enjoying corporate income tax incentives.

SEV's electronics products already enjoys a preferential income tax rate of 10 per cent for 15 years, a tax exemption for four years after that, and a 50 per cent tax reduction for the following nine years, he said

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