After 9 months of 2022, 4 Samsung factories in Vietnam brought in total revenue of about 56.6 billion USD and profit of nearly 4 billion USD.
Samsung Electronics Group (Korea) has just announced detailed financial data for the third quarter of 2022, including business results of four factories in Vietnam, including Samsung Electronics Vietnam (Samsung Bac Ninh), Samsung Electronics Vietnam Thainguyen (Samsung Thai Nguyen), Samsung Display Vietnam and Samsung Electronics HCMC CE Complex.
Accordingly, in the last 3rd quarter of 2022, the total revenue of these 4 factories reached 18.7 billion USD, up 4.5% compared to the second quarter of 2022 but down 6.5% over the same period last year.
Accumulated in the first 9 months of the year, the total revenue of 4 Samsung factories reached about 56.6 billion USD.
In terms of profit, 4 factories made a profit of 1.25 billion USD in the third quarter of 2022, bringing 9 months’ profit to nearly 4 billion USD, up more than 10% over the same period last year.
In the revenue structure of 4 factories, Samsung Thai Nguyen is still the main source of revenue, bringing in $6.5 billion. However, this is the lowest revenue of Samsung Thai Nguyen factory in more than 1 year.
Notably, the revenue of Samsung Display Vietnam increased sharply and was higher than that of Samsung Bac Ninh, USD 5.8 billion and USD 5.3 billion, respectively.
Meanwhile, Samsung Electronics HCMC CE Complex’s revenue dropped to only 1 billion USD.
Recently, information from Korean media said that Samsung will reduce smartphone production by about 13% in 2023, equivalent to about 30 million orders, mainly for mid-range and low-end models. due to the decline in smartphone sales globally.
In particular, the proportion of smartphone production at the factory in Vietnam, which currently accounts for 50% of the group’s total output this year, will drop to 40% by 2023, although the company still claims Vietnam is a its global production base.
According to data from the General Statistics Office of Vietnam, smartphone output fell 9.3% to 20.6 million units in November from a year earlier. Total smartphone production in the first 11 months of the year decreased to 6.1%, making the export value of this item of Vietnam in November decreased by 1% compared to the previous month and decreased by 0.7% compared to the previous month with the same period last year.
The reason for this decline is largely due to the fact that Samsung, the country’s largest manufacturer, cut back on smartphone production and exports in Vietnam in November, just before the Christmas sales season. New signs that the Korean “giant” is forced to adapt to a decline in global demand.
The global smartphone market shrank 12% year-on-year in the third quarter as consumers’ disposable incomes were slashed by rising inflation.
Even so, Samsung still aims to increase the share of foldable phones to half of total smartphone sales by 2025 and make them another mainstay of the company besides its flagship Galaxy line S and a major category in the premium segment.
Samsung expects foldable smartphone shipments to reach 26 million units globally next year, from an estimated 16 million units this year. The company says it is working on other form factors, such as smartphones with rollable screens.
Thus, according to analysts, the production cut in Vietnam only reflects the overall decrease in Samsung’s production, not the shift of production to other countries.