A new Vietnamese subsidiary of the South Korean tech giant Samsung has obtained the investment license for a US$1.2 billion manufacturing plant in the northern province of Thai Nguyen.
The Samsung Electro – Mechanics Vietnam Co Ltd (SEM) will build its 30-hectare facility at the Yen Binh 1 Industrial Park in Pho Yen District.
It will sit next to a high-tech complex that is currently under construction, another Samsung project that costs a hefty $2 billion.
This represents a combined sum of $3.2 billion that the South Korean firm has invested in the province.
Earlier, Samsung Construction and Trade, a Samsung subsidiary, had inked a memorandum of understanding with the Ministry of Planning and Investment regarding cooperation on investment and infrastructure development. The signing was completed during Samsung deputy chairman Jung Yeon Joo’s trip to Vietnam in late September.
Samsung C&T said it wants to cooperate with Vietnam in several future infrastructure development projects, such as establishing a power generating plant, airport, and shipyard, among other things.
Samsung expected to post a record operating profit of 10.1 trillion won ($9.4 billion) in the third quarter of this year, AFP quoted the company as saying on Friday.
According to AFP, the estimate was slightly higher than analyst predictions and represents a 25 percent increase from a revised operating profit of 8.06 trillion earned a year earlier.