Four large Samsung factories in Vietnam reduced interest

In the consolidated financial report in 2024, Samsung Electronics said global revenue increased by 16.2% to more than US $ 220 billion, but the figure in Vietnam only increased by 0.6% to 56.7 billion USD. Samsung Vietnam’s main factories contribute more than 25% of the company’s global revenue.

4 main factories in Vietnam include Samsung Thai Nguyen, Samsung Electronics Vietnam Bac Ninh, Samsung Display Vietnam Bac Ninh and Samsung Electronics HCMC CE Complex in Ho Chi Minh City. In addition, Samsung Vietnam also has two other large factories and one research and development center. However, Samsung Electro-Mechanics specializes in manufacturing cameras and Samsung SDI, specializing in manufacturing batteries, not giving data in this report.

Samsung Thai Nguyen (SEVT), Samsung’s main phone manufacturer, is the largest source of revenue in Vietnam with $ 22.9 billion, up 7.6% over the same period. Sevt’s revenue after Samsung Electronics America and Samsung Semiconductor, both in the US. SEVT’s 2024 interest fell by 7.2% to 1.4 billion USD.

Samsung Electronics Vietnam (SEV) factory in Bac Ninh, is another unit specializing in phone production, recorded revenue of 14.8 billion USD and interest of more than 943 million, increasing by 5.7% and 18.9 respectively % compared to the same period 2023.

Compared to the results of the first 9 months of 2024, the interest of SEVT and SEV almost did not increase in the last quarter last year.

In Bac Ninh, Samsung Display Vietnam factory (SDV), in charge of screen production, reduces both revenue and interest. Revenue decreased by 15.7% to 14.2 billion USD, while interest fell by half to more than 583 million USD.

Despite the reduced results, SDV continues to invest heavily in Vietnam. September 2024, Bac Ninh and Samsung Display sign a memorandum of understanding of the project of screen and electronic components worth US $ 1.8 billion. In January 2025, Bac Ninh province officially awarded the investment registration certificate for SDV to increase capital by 1.2 billion USD to 7.7 billion USD.

With Samsung Electronics HCMC CE Complex (SEHC) in Ho Chi Minh City, specializing in manufacturing TVs, reducing interest by about 5% to about US $ 365 million, while revenue increased by 13.9% to 4.9 billion USD.

Samsung is the largest foreign direct investor in Vietnam, with a total registered capital of 23.2 billion USD. At the meeting with Prime Minister Pham Minh Chinh on the afternoon of February 12, Mr. Choi Joo Ho, General Director of Samsung Vietnam and his successor, Mr. Na Ki Hong, said he would continue to expand investment into new fields.

Samsung said this year’s Korean Chaebol will have to pay additional income tax in Vietnam in accordance with the minimum tax regulation. Samsung added that this regulation will not affect or affect Samsung’s tax payment very little in other countries, except for Vietnam because the tax rate in Vietnam is less than 15%.

Also in the financial statements, Samsung recorded a minimum tax payment in 2024 about 429.8 billion won, equivalent to 300 million USD, while 2023 did not pay this tax.