Samsung’s four subsidiaries in Vietnam posted a combined revenue of US$67.1 billion in 2018, up US$5.4 billion against 2017, while their net profit declined by 19% from US$5.8 billion to US$4.7 billion, according to Samsung’s consolidated financial statement.
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In the fourth quarter of 2018, both SEV and Samsung Electronics Ho Chi Minh (SEHC) reported losses of US$70 million and US$80 million, respectively, while SEVT’s profit reached a record low of US$120 million, significantly lower than previous quarters in a range of US$300 million – 1 billion.
The combined profit of four subsidiaries in the fourth quarter reached US$100 million, five times lower than the previous record low of US$500 million in the third quarter of 2016 caused by the Galaxy Note 7 incident.
The inefficient of operation in Samsung’s four subsidiaries in Vietnam led to a lower-than-expected revenue and profit of Samsung globally in the fourth quarter of 2018, down 10% and 31% year-on-year, respectively.
In 2018, Samsung’s combined revenue in the global market reached US$221.6 billion, slightly up from US$217.8 billion in 2017, while after-tax profit increased from US$38.3 billion to US$40.3 billion.
Vietnam’s GDP in 2018 reached US$238 billion, for which Samsung’s operation in Vietnam made up 27.6% of the total, down from the 33% recorded in previous years.
In 10 years, Samsung has increased its investment capital in Vietnam from US$670 million to over US$17.3 billion, a 26-fold increase. More importantly, all the registered capital has been fully disbursed, stated Shim Won Hwan, former CEO of Samsung Vietnam.
According to Samsung's statistics, around 50% of Samsung's smartphones and tablets are produced in Vietnam and exported to 128 countries and territories, including the US, Europe, Russia and Southeast Asia.
