In recent news, Samsung Electronics group has announced its consolidated business results for the year 2023. The company has generated $198.3 billion in global revenue, a 14.2% decrease compared to the same period last year. After deducting expenses, the group has made a net income of $11.9 billion, a 72% decrease. As of December 31, 2023, Samsung’s total assets reached $349 billion.
Looking specifically at the fourth quarter of 2023, Samsung has achieved a revenue of $51.4 billion and a net income of $3.97 billion. Although this profit figure is lower than the third quarter of 2023, it is double compared to the first two quarters of the year.
In the report, Samsung, the largest conglomerate in South Korea, also disclosed the business performance of its 4 factories in Vietnam, including Samsung Electronics Vietnam (SEV – Samsung Bac Ninh), Samsung Electronics Vietnam Thai Nguyen (SEVT – Samsung Thai Nguyen), Samsung Display Vietnam (SDV), and Samsung Electronics HCMC CE Complex (SEHC).
According to the report, the total revenue of these factories amounted to $61.4 billion, a reduction of nearly $10 billion (-14%), and the profit reached $4 billion, a decline of nearly 15% compared to the $4.7 billion in the previous year.
However, during the first nine months of the year, these 4 factories have generated a total revenue of $47.5 billion and a profit of $4.21 billion. Therefore, in the fourth quarter of 2023, these 4 companies achieved approximately $14 billion revenue and a loss of more than $210 million.
In 2023, Samsung Electronics Vietnam Thai Nguyen (Samsung Thai Nguyen) remains the most profitable unit for Samsung in Vietnam, with a revenue of $13.5 billion and a profit of $1.72 billion. Samsung Thai Nguyen was also voted as the largest company in Vietnam in the VNR500 ranking. This company is the largest phone manufacturing facility for Samsung globally, producing nearly 1/6 of Samsung’s global product output.
The remaining 3 factories of Samsung, whether big or small, have all been profitable. Specifically, Samsung Bac Ninh made a profit of $1.1 billion; Samsung Display Vietnam made over $880 million; and Samsung HCMC made $309 million in profit.
Therefore, it can be seen that the decline in revenue from Samsung’s factories in Vietnam is equivalent to the overall reduction of the Samsung system, but the decline in profitability is much lower. From contributing only 11% of Samsung’s profit in the previous year, Vietnam’s factories contributed more than 1/3 of the total profit in 2023.
Samsung officially invested in Vietnam in 2008 by constructing a mobile phone manufacturing plant, Samsung Electronics, in Bac Ninh province. Later, through continuous investment activities in Thai Nguyen, Hanoi, and Ho Chi Minh City, Samsung now operates 6 factories, 1 sales entity, 1 research, and development center. Currently, more than 50% of Samsung’s phones sold worldwide are products labeled as “Made in Vietnam”.
As of July 21, 2023, Samsung has invested $20 billion in Vietnam, with over 100,000 employees working at the company’s factories located in Hanoi, Ho Chi Minh City, Bac Ninh, and Thai Nguyen. Samsung continues to invest an additional $1 billion annually and is making efforts to fully deploy this additional investment to maintain competitive capacity and achieve sustainable development.
