Samsung may again be planning to invest billions of dollars in Vietnam to build a new smartphone production plant.
The company has applied for a license from the Vietnam government to invest $3 billion in a new smartphone production factory, Reuters reported, citing conversations with a Planning and Investment Department official on Monday. If approved, the factory will be in the Thai Nguyen province in northern Vietnam, where Samsung built a $2 billion smartphone factory in March, the official told Reuters.
Vietnam has become a hotbed of production activity for Samsung as the company works to reduce its operating costs. Earlier this year, the South Korean company ceded its position as the No. 1 smartphone vendor in China and India to local handset makers Xiaomi and Micromax, respectively. A new plant in Vietman will likely help Samsung to keep its costs low as it tries to gain back ground in emerging markets
The actual amount Samsung will spend on the new facility has not been determined, according to Reuters. If the deal is approved, Samsung could move quickly to build the facility and get production going.
Samsung did not immediately respond to a request for comment.