General Director of Samsung Vietnam Complex Choi Joo Ho said the group would not move smartphone production lines from Vietnam to India.
The Korea Herald quoted a source last month as saying that Samsung Electronics decided to gradually shift production of its flagship models to India, including phones being manufactured in Vietnam.
The report said the move is to minimize damage from the U.S.-China trade war and penetrate deeper into the world’s fifth economy.
However, Choi denies the information at a recent meeting with authorities of the northern province of Thai Nguyen which hosts a Samsung Electronics factory.
He said products made in India are mainly for the domestic market and a small part is exported to African countries.
In Vietnam, phone models are manufactured and exported to 128 countries around the world. Thus, the output of Samsung Electronics Vietnam is not affected by output in India.
Choi added that the group is committed to long-term investment in Thai Nguyen, and has recently increased capital by nearly US$1.2 billion into Samsung Electro-Mechanics Vietnam factory, raising Samsung’s total investment capital in the province to $7.5 billion.
An audited financial report shows that Samsung earned US$234 billion of revenue last year, up more than 8% from 2021. Four factories in Vietnam contributed 30% of the group’s total revenue and created profits of about US$4.6 billion.
Samsung Electronics Vietnam Thai Nguyen (SEVT), currently Samsung’s biggest smartphone factory in the world, created the highest revenue, $28 billion, up 13% against 2021.
Samsung has invested $18 billion in Vietnam and is planning to raise it to $20 billion.