Samsung to relocate Chinese display production to Vietnam

[HANOI] Samsung Electronics is planning to shift much of its display production from China to its plant in southern Vietnam this year, state media said on Friday.

Samsung is the single largest foreign investor in Vietnam, with investments totalling US$17 billion.

"Samsung sees Vietnam as an important gateway to other South-east Asian countries and a link in its global supply chain," state-run newspaper Tuoi Tre reported.

"The move will make Vietnam become the world's leading supplier of Samsung screens."

Samsung did not immediately respond to a Reuters request for comment.

The news comes as more companies look to diversify supply chains beyond China, after widespread disruption globally when the novel coronavirus first struck in the world's manufacturing powerhouse.

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The South Korean tech giant already produces displays in Vietnam, where it has six factories in Vietnam and two research and development centres.

The screens will be produced in the Samsung Electronics Complex in Ho Chi Minh City, Vietnam's business hub, Tuoi Tre said.

On Saturday, a Samsung spokesperson clarified to The Business Times that "reports on the relocation of Samsung's display production from China to Vietnam are untrue".

REUTERS