4 factories in Vietnam bring in nearly 1.2 billion USD for Samsung

(Dan Tri) - In the first quarter of this year, four Samsung factories in Vietnam reported a profit of nearly 1.2 billion USD. However, the Korean electronics giant is said to still face many challenges ahead.

According to the consolidated financial report for the first quarter of 2024, South Korea's Samsung Electronics Group recorded a 13% increase in global revenue over the same period, reaching about 54 billion USD. Notably, the profit of South Korea's leading private corporation increased 4 times, to nearly 5.1 billion USD.

Samsung's financial report also revealed the business situation of four Samsung factories in Vietnam located in Thai Nguyen, Bac Ninh and Ho Chi Minh City.

The total revenue of Samsung's four factories in Vietnam in the first three months of this year reached more than 16 billion USD, an increase of about 2 billion USD compared to the last quarter of last year. The after-tax profit of the factories reached about 1.18 billion USD, accounting for more than 23% of the parent corporation's profit.

Of which, Samsung Thai Nguyen continues to be the factory with the highest profit in Vietnam, reaching 690 million USD. Next is Samsung Electronics Vietnam (SEV) in Bac Ninh with a profit of 300 million USD. The remaining facility in Bac Ninh, Samsung Display (SDV), also reported a profit of more than 120 million USD.

Samsung's only factory in the Southern region, Samsung Electronics HCMC CE Complex (SEHC) in Ho Chi Minh City, also recorded a profit of more than 40 million USD.

Factories in Vietnam bring in nearly 1.2 billion USD for Samsung (Photo: Samsung).

In the last quarter of last year, three of Samsung's four factories in Vietnam recorded losses. Specifically, Samsung Electronics Vietnam (SEV) in Bac Ninh lost about $116 million, and Samsung Thai Nguyen (SEVT) nearly $90 million.

Samsung Electronics HCMC CE Complex (SEHC) also lost 15 million USD. Samsung Display Vietnam (SDV) was the only unit with a profit of 41 million USD.

The South Korean electronics giant said its revenue increased sharply year-on-year thanks to rising memory semiconductor prices and sales of the Galaxy S24 phone. The phone line has helped Samsung break out in the US market. In the first quarter, Samsung saw 31% growth year-on-year in this market.

In addition, the depreciation of the won against major currencies in the world has positively impacted the group's total profit.

Despite the recovery in profits, Samsung still faces many challenges. In 2023, Apple overtook Samsung to become the world's largest smartphone maker by volume, a position Samsung had held for a decade.

Not only that, Samsung has also recently faced another strong competitor from China, Huawei. In a recent report by market research firm Counterpoint Research , Samsung lost its leading position in the global foldable phone market to Huawei in the first quarter of 2024.

Huynh Anh

Source: https://dantri.com.vn/kinh-doanh/4-nha-may-tai-viet-nam-mang-ve-gan-12-ty-usd-cho-samsung-20240609223646725.htm