Samsung, LG plan multi-billion-dollar further funding in Vietnam By Reuters

HANOI (Reuters) – South Korean electronics giants Samsung (KS:) and LG plan to pour billions of {dollars} of further funding into Vietnam, state media reviews and the Vietnamese authorities mentioned on Tuesday.

The announcement comes after Samsung minimize smartphone manufacturing in Vietnam twice this yr in response to weaker world demand.

Samsung Electronics (OTC:), the most important single international investor in Vietnam, will make investments $2 billion extra within the Southeast Asian nation, elevating its whole to $20 billion, Vietnamese state media mentioned.

Samsung has for years produced about half of its smartphones in Vietnam and accounts for almost a fifth of the nation’s general exports.

The extra funding will additional agency up Vietnam as Samsung’s key manufacturing website, reported Vietnam Information Company, following a gathering on Tuesday in Seoul between Vietnamese President Nguyen Xuan Phuc and the corporate’s chief government Han Jong-hee.

Samsung didn’t instantly reply to a request for remark.

Individually, the Vietnamese authorities mentioned in a press release that LG would additionally make investments $4 billion extra within the nation to make it a smartphone digicam manufacturing hub.

The state media report and the federal government assertion didn’t present additional particulars on the funding by the 2 firms.

LG, which has to this point invested $5.3 billion in Vietnam to make such merchandise as electronics dwelling home equipment, cameras and automobile components, didn’t instantly reply to a request for remark.

The bulletins got here as Vietnam and South Korea mentioned on Tuesday they upgraded their relations to “complete strategic partnership”, which Vietnam has to this point established solely with China, Russia and India.

The 2 nations goal to boost bilateral commerce to $100 billion subsequent yr, and to $150 billion a yr by 2030, up from $78 billion final yr.

Vietnam has during the last decade emerged as probably the most enticing manufacturing hubs for electronics firms, however weakening world demand has prompted manufacturing cuts this yr.