Where are Samsung’s Factories in Vietnam?

Samsung has become instrumental to Vietnam’s development, accounting for over US$65 billion worth of exports from the Southeast Asian nation in 2021. Here’s where their factories are and why they’re there.

Late last year, Samsung inaugurated its biggest research and development center in Southeast Asia. The new research facility was opened in Hanoi at an estimated cost of US$220 million.

This is just the latest investment from the South Korean electronics behemoth, which has been manufacturing in Vietnam since 2008. Since then, it’s estimated that Samsung has invested upwards of US$18 billion, and is expected to invest even more this year.

So where in Vietnam is Samsung manufacturing and why?

Samsung factories in Vietnam: Where are they?

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According to Samsung’s Supplier List 2022, which covers 80 percent of Samsung’s manufactured goods, the electronics giant had 28 factories producing electronics in Vietnam across 11 provinces. The bulk were concentrated in Vietnam’s north with 25 factories. The remaining three were located in southern Vietnam.

Samsung suppliers in Vietnam by province, region

Source: Samsung Supplier List 2022

Why does Samsung manufacture in northern Vietnam?

Proximity to China

For electronics manufacturers like Samsung, Vietnam is an attractive alternative to China. Vietnam’s north offers a number of advantages few other locations can match. Chief among them is its proximity to China, which gives manufacturers the ability to more seamlessly integrate the region into their existing supply chains.

Port system

Hai Phong, around 100 kilometers to the east of Hanoi, has the largest deep-sea port in Northern Vietnam. There are also plans to expand this port even further to accommodate vessels of 100,000 deadweight tonnage.

Furthermore, the port is also linked to the surrounding provinces by both road and rail. This has allowed Samsung to develop suppliers in other parts of northern Vietnam.

Skilled labor

Vietnam also has an abundance of low-cost, yet relatively high-skilled labor. Northern Vietnam, in particular, has been an electronics manufacturing hub for years and this has allowed for workers to flourish in terms of skill development.

Hanoi, Vietnam’s capital, is also located in the north and is Vietnam’s second biggest population center. With the full gamut of amenities of any metropolis in the world, workers can enjoy a high quality of life within its borders while also commuting to factories beyond the city’s borders – many companies bus their staff into and out of Hanoi.

See also: Salary and Wages in Vietnam

The future of Samsung factories in Vietnam

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Moving forward, this is expected to continue with Samsung announcing plans to invest a further US$2 billion in manufacturing in the Southeast Asian nation, though it has not, as yet, announced when or where. This would bring its total investment to more than US$20 billion.

See also: Where are Apple Products Made in Vietnam?

List of Samsung suppliers in Vietnam

Note: This may not be a complete list. Samsung only provides the details of suppliers that agree to be listed, covering roughly 80 percent of their production capacity.

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