Samsung’s USD2.5 billion expansion approved

Tuesday, 28/02/2017 10:32
Samsung Display Vietnam officially received an investment licence on February 24th for its USD2.5 billion expansion project in Yen Phong Industrial Park, the northern province of Bac Ninh.

Chairman of the Bac Ninh People's Committee Nguyen Tu Quynh (right)
 presented the investment licence to Sam Sung Display Vietnam. 
(Photo: bacninh.gov.vn)

The Government gave the expansion the preferential treatment of a large-scale project.

Through the expansion, Samsung Display Vietnam will officially increase its investment in Vietnam to USD6.5 billion. It is also the first billion-dollar project in the country this year.

Samsung Display Vietnam started construction of display panel production facilities in late 2014 on unused land at Samsung Electronics’ plant in Bac Ninh, with initial investment of USD1 billion. It began production in March 2015 and increased its investment to USD4 billion.

The organic light-emitting diode (OLED) display modules produced in the province are used to supply Samsung Electronics’ manufacturing plants located in both Bac Ninh and Thai Nguyen (another northern province).

Industry insiders said the move is in response to growing demand for smart phone display panels, the biggest growth segment in the display business, especially the smart phone segment.

Samsung is the only group in the world with the exclusive technologies and adequate capacity for AMOLED production. The Republic of Korea firm holds up to 95 percent of the global AMOLED display market share, with an average capacity of around 200 million products a year.

With the new investment, Samsung continues its role as the largest foreign investors in the country. The expansion also dispelled concerns that Samsung would halt investment plans in Vietnam after its recent incidents, the Dau Tu (Investment) Newspaper reported.

Samsung has committed to invest more than USD17.3 billion in Vietnam: including the USD6.5 billion Samsung Display, the USD9.5 billion Samsung Electronics Complex in Thai Nguyen, Bac Ninh (USD2.5 billion) and HCM city (USD2 billion).

In addition, the group also has the USD1.2 billion Samsung Electro-Mechanics project in Thai Nguyen./.

 

CPV/VNA

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