In July 2014 Samsung Display Co Ltd invested $1 billion to set up a display manufacturing plant in Vietnam. This plant, built in Bac Ninh province, is planned to provide high resolution and flexible displays for smartphones and tablets. Now according to Reuters’ report, Samsung has been licensed to invest extra $3 billion in Vietnam to boost display module production capacity.
In recent years, due to the intensifying competition in the global market of smartphones and especially the tablet computers, the display screen market also suffered a decline in profits. As one of the biggest screen makers in the world, Samsung hopes to alleviate the plight of profits decline by setting up plants in the countries with lower production costs like Vietnam and India. As display screen manufacture belongs to labor intensive industry, analysts said that Samsung will save about 30% costs by opening factories in Vietnam, comparing it with in China.
It’s reported that the Vietnam-based display plant invested $1 billion last year by Samsung is mainly responsible for the production of OLED screen module, and this $ 3 billion investment over the course of 2015-2020 is expected to expand Vietnam production base. According to the Vietnam News Agency, with the total registered investment for the Bac Ninh screen production, the $4 billion project is expected to create as many as 20,000 jobs. With the investment being put in place in 2020, Vietnam will be one of the most screen manufacturing base of Samsung.