Samsung wants to build new smartphone factory in Vietnam

Samsung to build a second smartphone factory in Vietnam. The investment is reportedly worth 2.42 billion euros. The electronics giant would like to strengthen its competitive position with the investment.

The project is not yet complete, Reuters reported. The news agency bases its story on an anonymous source, who released the news without permission. Samsung and the local authorities have not yet issued an official response.

Samsung would have investments in Vietnam with a value of 8.88 billion euros in its books for 2014. In March, the company already opened a smartphone factory in the country. At the time, the project cost 1.61 billion euros. Samsung would like to reduce costs in the long term with the investments, in order to gain a better position in the competitive market.

Samsung has its smartphones mainly made in China, but is shifting production to Vietnam. Production costs in China would rise relative to those in Vietnam. At the end of 2013, reports appeared that eventually 80 percent of Samsung smartphones should be made in Vietnam. In 2015, this would already apply to 40 percent of the devices, which together represent the largest part of the turnover of the Korean group.