Samsung VN's export revenues to increase 7% despite Note 7 incident
Exports revenues from the two plants of Samsung Electronics Viet Nam (SEV) in Bac Ninh Province and Samsung Electronics Viet Nam – Thai Nguyen (SEVT) in Thai Nguyen Province were estimated to reach US$35 billion this year, posting a 7 per cent year-on-year increase despite the impact from this year’s Note 7 incident.
Production line of Samsung Electronics Viet Nam in the northern province of Bac Ninh. Samsung’s export revenues this year are estimated to increase 7 per cent despite the Note 7 incident.
Samsung’s fourth quarter financial report revealed that Note 7 incident had an insignificant short term impact on Samsung Vietnam’s business and export turnover in 2016.
According to its third quarter financial report announced on September 30th, Samsung Electronics Viet Nam in Bac Ninh reported a 30 per cent decline in revenue, equivalent to more than VNĐ32 trillion against the previous quarter.
Samsung’s representative yesterday told Viet Nam News that it has suffered a short-term impact from the Note 7 incident. Samsung Electronics Viet Nam (SEV) – the main Note 7 production unit bore the brunt of the impact.
“Shorty after we decided to stop producing the Note 7 and adjust the production line, the production and business performance returned to normal and we witnessed a rapid recovery. SEV and SEVT are producing a wide range of products including S7, S7 Edge, Galaxy A, Galaxy J, as well as Tablet models, in addition to the Note 7,” he added.
Samsung Electronics HCM City CE Complex (SEHC) also expected export revenue of $1.4 billion this year, increasing 180 per cent from last year. SEHC became operational in June with total investment of $2 billion. The complex has focused on research and development as well as production of high-end TVs, washing machines, refrigerators and air conditioners.
Lee Sangsu, SEHC’s general director said the project became one of Samsung’s four biggest consumer electronics production plants worldwide. The project has been one of the most important factories in Samsung’s global TV supply chain.
Total export turnover of Samsung Electronics in Vietnam, including the three factories, was estimated at $36.4 billion, or a 9.3 per cent increase from last year.
By the middle of this month, the country’s total export revenue was $167.83 billion. Of which, mobile phones and spare parts took the lead in terms of export revenue at $33 billion. The products’ export revenue for the whole year was expected to reach $35 billion, accounting for 20 per cent of the country’s total export revenue.
Samsung Viet Nam in October announced the recall of its Galaxy Note7 smartphone after reports of the device catching fire while charging. As one of Samsung’s biggest production centres, Viet Nam was expected to be affected by the massive recall as the country has supplied around 35 per cent of the producer’s mobile phones around the world.