​4 Samsung factories in Vietnam report fall in 2024 profit

​4 Samsung factories in Vietnam report fall in 2024 profit

South Korean conglomerate Samsung Electronics’ profit generated from its four factories in Vietnam reached over US$3.2 billion in 2024, a decrease compared to 2023.

Samsung is currently the largest foreign direct investment investor in Vietnam. Photo: Samsung

Samsung Electronics’ consolidated financial report for 2024 showed that Samsung Electronics Vietnam Thai Nguyen Co. Ltd. (SEVT) in northern Vietnam achieved net revenue of nearly $22.9 billion in 2024, rising 7.5 percent compared to 2023.

SEVT’s revenue was only lower than that of Samsung Electronics America ($28.3 billion) and Samsung Semiconductor ($32.6 billion), both based in the U.S., but was higher than those of Samsung Electronics’ subsidiaries in other markets, such as China and India.

While revenue increased, SEVT’s profit in 2024 reached $1.44 billion, falling over seven percent compared to the previous year.

Founded in 2013 and officially operational in 2014, SEVT is Samsung's largest mobile phone factory globally, with an initial investment of $5 billion.

In April last year, SEVT celebrated the milestone of producing one billion phones after 11 years of operation, since the release of the first Samsung Galaxy in 2014. In addition to smartphones, SEVT’s main products also include tablets.

Meanwhile, Samsung Electronics Vietnam in Bac Ninh Province, also in the north – another subsidiary specializing in phone production – reported revenue at about $14.8 billion in 2024, with a profit of $944 million.

Similar to SEVT, Samsung Electronics Vietnam in Bac Ninh recorded an increase in revenue but saw profit decrease by nearly eight percent over 2023.

A Samsung factory specializing in screen production, Samsung Display Vietnam, also located in Bac Ninh, reported a decline in both revenue and profit.

In particular, Samsung Display Vietnam’s revenue dropped 15.7 percent to $14.2 billion, while its profit was only $584 million, down 26 percent.

Despite the profit decline, the South Korean conglomerate continued to increase its investment in Vietnam.

Accordingly, Bac Ninh and Samsung Display signed a memorandum of understanding to develop a $1.8 billion display and electronic component project in September 2024.

Samsung is currently the largest foreign direct investment (FDI) investor in Vietnam, with six factories in Bac Ninh, Thai Nguyen, and Ho Chi Minh City, boasting more than $22 billion in investment, with roughly half of that in Bac Ninh.

In Ho Chi Minh City, Samsung Electronics HCMC CE Complex, which specializes in television production, reported a 14-percent increase in revenue, hitting $4.86 billion.

However, like its other subsidiaries, Samsung Electronics HCMC CE Complex saw a 5.2-percent decline in profit, reaching $265 million in 2024.

Samsung Electronics achieved consolidated revenue of $220 billion and profit of $25.2 billion in 2024, both increasing over 2023.

In the latest report on the performance of FDI enterprises in Vietnam, the Ministry of Finance stated that the number of such enterprises reporting losses has been increasing over the past few years.

Among the 28,918 FDI enterprises whose financial reports were compiled by the Ministry of Finance in 2023, 16,292 reported losses.

On average, more than one in two FDI enterprises in Vietnam reported losses.

Tuoi Tre News