Samsung to pump $850M for Vietnam expansion

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The construction arm of South Korean conglomerate Samsung Group has secured a $805 million deal to build a display module assembly plant in Vietnam.

Samsung C&T, the construction arm of South Korean conglomerate Samsung Group, has received a million-dollar order to build an assembly facility in Vietnam.

The deal, worth KRW 930 billion ($805 million), will be for a display module assembly plant in the Bac Ninh province for Samsung Display Co Ltd., according to Yonhap News.

Reuters quoted a source familiar with the matter who said that Samsung Display, another subsidiary of the Samsung Group, had been pushing to invest a total of $3 billion by 2020 "to boost its display module production capacity" in the Asian country.

Samsung Display, which supplies screens for Samsung Electronics' smartphones and other products, has already committed $1 billion to build an organic light-emitting diode (OLED) display module assembly plant in Bac Ninh.

Samsung Electronics has shifted much of its manufacturing operations to Vietnam as part of its plan to lower production costs amidst the price competition in the consumer electronics market.