April 19, 2024

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[THE INVESTOR]  Samsung Electronics' two Vietnam plants are estimated to see a 7 percent growth in export revenue this year despite the impact from the unprecedented recall of the fire-prone Galaxy Note 7.

According to Viet Nam News, the two plants that produce annual 150 million Samsung handsets, almost half the total sold globally, are expected to post a combined US$35 billion in export revenue this year, up 7 percent compared to a year ago.

The Vietnam plants were hit hard by the Note phone’s recall in the third quarter when they suffered a 30 percent plunge in revenue, worth 32 Vietnamese dong (US$140 million), on-year.

But a Samsung official said the impact was “short-term” thanks to the plant’s diverse product lineup ranging from Galaxy S7 and S7 Edge to budget models such as Galaxy A and Galaxy J. More recently, Samsung is beefing up production of the S7 Edge to fill up the loss from the Note’s withdrawal.

“Shortly after we decided to stop producing the Note 7 and adjusted the production line, the output and business performance returned to normal and we witnessed rapid recovery,” the official was quoted as saying by Viet Nam News.

In the meantime, Samsung’s appliance plant in Ho Chi Minh City is expected to see US$1.4 billion in export revenue this year, a 180 percent surge from last year.

Samsung’s total export turnover in Vietnam, including the three plants, is estimated to stand at US$36.4 billion, up 9.3 percent over the past year.

By Lee Ji-yoon (jylee@heraldcorp.com)