Vietnam Wins Additional Investments From Samsung, LG

Author: Anusuya Lahiri | December 06, 2022 07:51am

• Samsung Electronics Co, Ltd (OTC:SSNLF) and LG Electronics Inc (OTC:LGEIY) (OTC:LGEJY) earmarked billions of dollars of additional investment into Vietnam.
• Samsung Electronics, the largest single foreign investor in Vietnam, will raise its total investment to $20 billion from $18 billion, Reuters reports citing the Vietnamese government.
• Samsung slashed smartphone production in Vietnam twice this year due to weaker global demand.
• Also Read: Taiwan Semiconductor Wins Apple, Nvidia As First Customers Of Arizona Plant: Report
• Samsung has for years produced about 50% of its smartphones in Vietnam, accounting for nearly 20% of the country's overall exports.
• The additional investment will further solidify Vietnam as Samsung's key production site following a meeting in Seoul between Vietnamese President Nguyen Xuan Phuc and the company's CEO, Han Jong-hee.
• LG also earmarked $4 billion more in the country to make it a smartphone camera production hub.
• LG has invested $5.3 billion in Vietnam to make products like electronics, home appliances, cameras, and car parts.
• Vietnam and South Korea upgraded their relations to a "comprehensive strategic partnership."
• They aimed to raise bilateral trade to $100 billion next year and $150 billion a year by 2030, up from $78 billion last year.
• Over the last decade, Vietnam has emerged as one of the electronics companies' most attractive production hubs.
• China's COVID controls and the regulatory clampdown on tech giants proved to be a deal breaker for the country as companies shifted production to convenient territories.
• A collective outcry from people across China against its COVID controls led to partial redemption from China's government.
• Nationwide protests translated into gradual ease in restrictions signaling possible economic reopening as it treaded into the fourth year of the pandemic.

Posted In: LGEIY LGEJY SSNLF