Besides Samsung Electronics, Samsung Display, another Samsung Group member is ambitiously ramping up investment in Vietnam, promising to hit $6.5 billion in early 2017.

Minister and Government Office Chairman Mai Tien Dung has just confirmed with the local press that the government has approved a proposal lodged by the Bac Ninh Province People’s Committee, granting the same privileges to Samsung Display’s $2.5 billion expansion project that are applied to other large-scale high-tech projects.

The next step for Bac Ninh province is to seek comments from authorised government agencies and submit the project’s investment plan to the government.

“We are currently in the legal setup stage, hoping to secure the investment certificate by the upcoming 20th anniversary celebrating Bac Ninh’s re-establishment,” said a provincial source knowledgeable in the matter.

If things go smoothly, Samsung Display will become the first foreign firm to invest over a billion dollars in Vietnam in the Year of the Rooster.

With this new project, Samsung Display’s total investment in Vietnam will touch $6.5 billion, after the initial $1 billion project in 2014 ballooned to $4 billion in 2015.

Samsung Display’s global successes dominated media headlines throughout 2016, fuelling the corporation’s demand for expansion.

Last April, Wall Street Journal reported that Samsung had signed to supply OLED screens to US tech giant Apple.

The screen volume was not disclosed, but it was estimated to be in the range of 100 million units.

Shortly after, Japanese Nikkei broke the news that Samsung is planning a $6.82-billion investment to upgrade and expand its OLED screen production lines for the Apple deal.

In late 2016, DigiTimes, Taiwan’s leading high-tech media outlet, disclosed that Samsung Display will supply AMOLED screens a kind of OLED screen for Apple’s new iPhone line in 2017.

Samsung Display’s Bac Ninh plant is reported to have reserved individual production lines to meet Apple’s demands.

When making their foray into Vietnam, Samsung Display confirmed plans to turn Vietnam into their global manufacturing base.

Screens are valuable components in smartphone manufacturing. As soon as these components are made in Vietnam, the localisation rate of Samsung plants in Vietnam will be significantly increased.

If Samsung Display’s investments in Vietnam touch $6.5 billion, it will create more jobs, increase tax contributions, and bring about a raft of other positive socioeconomic gains.

Accordingly, irrespective of Samsung Display’s ambitions and high-profile business dealings, its big investment plan is undeniably beneficial to Vietnam.

VIR