Four Vietnam factories generate US$1.2 bln in net profit for Samsung

In a recent report on financial results, Samsung Electronics recorded a 13% increase in global revenue over the same period, reaching about US$54 billion. It’s noteworthy that its profit increased four times to nearly US$5.1 billion.

Among its factories operating globally, four factories in Vietnam earned a combined revenue of over US$16 billion, or US$2 billion more than the last quarter of last year. These factories brought in about US$1.18 billion in after-tax profit, accounting for 23% of the parent group’s total profit.

Of the four factories, Thai Nguyen-based factory (Samsung Electronics Vietnam Thai Nguyen – SEVT) earned the highest profit at US$690 million, followed by Samsung Electronics Vietnam (SEV) in Bac Ninh at US$300 million and Samsung Display Vietnam (SDV) in Bac Ninh at more than US$120 million.

The Group’s only factory in Southern Vietnam, Samsung Electronics HCMC CE Complex (SEHC) in Ho Chi Minh City, also recorded a profit of more than US$40 million.

In the last quarter of 2023, three out of the four Samsung factories in Vietnam reported losses. Samsung Electronics Vietnam (SEV) in Bac Ninh lost about US$116 million, Samsung Electronics Vietnam Thai Nguyen (SEVT) nearly US$90 million, and Samsung Electronics HCMC CE Complex (SEHC) US$15 million. Only Samsung Display Vietnam (SDV) brought in a profit of US$41 million.

Samsung attributed its high revenue to strong sales of flagship Galaxy S24 smartphones and higher prices for memory semiconductors. In addition, the depreciation of the Korean won compared to major currencies in the world has had a positive impact on the total profit of this group.

Despite profits reaped, Samsung is still facing many challenges. Last year saw Apple overtake Samsung to become the world’s largest smartphone manufacturer by volume. Previously, Samsung had held this position for a decade.

Furthermore, Samsung also recently faced Huawei, a serious competitor from China. A report recently unveiled by market research company Counterpoint shows Samsung lost its leading position in the global foldable smartphone market to Huawei in the first quarter of 2024.