Samsung and LG to make huge investment in Vietnam

Samsung and LG plan to make additional investment in Vietnam, the Vietnamese government said on Tuesday.
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The announcement comes after Samsung cut smartphone production in Vietnam twice this year in response to weaker global demand.

Samsung Electronics, the largest single foreign investor in Vietnam, will raise its total investment in the country to $20 billion from $18 billion, the government said in a statement.

Samsung declined to comment on the investment. A source familiar with the matter on Tuesday said the investment would be completed by the end of this year, Reuters news report said.

Samsung has for years produced about half of its smartphones in Vietnam and accounts for nearly a fifth of the country’s overall exports.

The additional investment will firm up Vietnam as Samsung’s key production site, the government said.

Vietnamese government said in a statement that LG would invest $4 billion more in the country to make it a smartphone camera production hub.

LG, which has invested $5.3 billion in Vietnam to make such products as electronics home appliances, cameras and car parts, did not respond.

Vietnam has over the last decade emerged as one of the most attractive production hubs for electronics companies, but weakening global demand has prompted production cuts this year.