CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Samsung Vietnam records 40% decline in profit amid unfavorable business environment
Ngoc Mai 10:29, 2019/09/12
In spite of decline in profits, as both Samsung and Apple launching their flagships in the third quarter of 2019, overall revenue and profits of Samsung, and its subsidiaries in Vietnam in particular, could receive big boost in the remaining two quarters.
Samsung’s four subsidiaries in Vietnam posted a combined revenue of US$31.8 billion in the first six months of 2019, up US$500 million year-on-year, while their net profit declined by 40% from US$3.2 billion to US$1.9 billion, according to Samsung’s consolidated financial statement. 
 
Illustrative photo.
Illustrative photo.
A sharp decline in Samsung Vietnam’s profit was due to unfavorable business operations of Samsung Electronics Vietnam Bac Ninh (SEV), which made up more than half of the US$1.3 billion loss in profit of Samsung. Meanwhile, Samsung Display Vietnam (SDV)’s profit of US$380 million in the same period of last year turned into a loss of US$30 million. 

The combined revenue of SEV and SDV declined by US$2.5 billion year-on-year in the first six-month period. 

Contrary to the negative performance of these two subsidiaries, Samsung Electronics Vietnam Thai Nguyen (SEVT) recorded an all-time high revenue of US$7.8 billion in the second quarter, in turn partly offsetting the losses incurred by SEV and SDV. 

The SDV is known for manufacturing display screens for both Samsung and Apple’s products, while the SEV and the SEVT are two key Samsung’s smart phone production bases globally. 

The inefficient of operation in Samsung’s four subsidiaries in Vietnam led to a lower-than-expected revenue and profit of Samsung globally in the January – August period at US$95 billion and US$8.9 billion, down 9% and 55% year-on-year, respectively. 

In spite of declines in profits, as both Samsung and Apple launching their flagships in the third quarter of 2019, overall revenue and profits of Samsung, and its  subsidiaries in Vietnam in particular, could receive big boost in the remaining two quarters. 

In 2018, Samsung’s combined revenue in the global market reached US$221.6 billion, slightly up from US$217.8 billion in 2017, while after-tax profit increased from US$38.3 billion to US$40.3 billion. 

Vietnam’s GDP in 2018 reached US$238 billion, of which Samsung’s operation in Vietnam made up 27.6% of the total, down from 33% recorded in previous years. 

In 10 years, Samsung has increased its investment capital in Vietnam from US$670 million to over US$17.3 billion, a 26-fold increase. More importantly, all the registered capital has been fully disbursed, stated Shim Won Hwan, former CEO of Samsung Vietnam.  

According to Samsung's statistics, around 50% of Samsung's smartphones and tablets are produced in Vietnam and exported to 128 countries and territories, including the US, Europe, Russia and Southeast Asia.
Comments
Other news
15:52, 2025/02/20
Vietnam scales back plan to boost offshore wind
The World Bank has estimated Vietnam’s offshore wind potential at around 600 GW, with projections that the sector could provide 12% of the country’s total electricity generation by 2035.
21:59, 2025/02/19
US firms in Vietnam concern potential export tariffs
The American Chamber of Commerce in Vietnam has urged policymakers to continue dialogue to find solutions that support sustainable economic growth and minimize trade disruptions.
20:00, 2025/02/18
Vietnam’s hi-tech firms urged to master semiconductors, AI technologies
Only with big tasks can Vietnamese enterprises grow into giants.
11:57, 2025/02/13
Vietnam to develop small-size nuclear power plant
Vietnam's power capacity needs to expand 2.5–3 times by 2030 and 5–7 times by 2050 to keep pace with the country's projected high economic growth.
21:49, 2025/02/12
Vietnam's institutional reforms critical to achieving 2025 growth targets
The State's strong determination to identify bottlenecks and put concrete solutions in place matters a lot to economic growth.
21:16, 2025/02/11
Prime Minister reaffirms reaffirms commitment to enhancing investment climate
The Prime Minister called on the private sector to join the national effort to achieve at least a double-digit economic growth rate and contribute to the overall economic growth target.