August 27, 2024 /SemiMedia/ — South Korea’s government sources reveal that Samsung’s Vietnam branch is currently in discussions to establish a semiconductor assembly plant, potentially in Bắc Giang Province. Known for its strategic location near China and its proximity to Hanoi and the Hải Phòng port, Bắc Giang is considered an industrial powerhouse suitable for such an endeavor.

During Vietnamese Prime Minister Phạm Minh Chính’s visit to South Korea in July 2024, Samsung Chairman Lee Jae-yong reaffirmed the company’s commitment to expanding its investments in Vietnam. The Prime Minister underscored Vietnam’s interest in furthering cooperation in the semiconductor sector, with both sides reportedly reaching a mutual understanding on this front.

Industry analysts suggest that Samsung’s move may be tied to the global minimum tax (GMT) set to take effect in 2024. While the GMT could increase corporate tax obligations, establishing a semiconductor assembly plant in Vietnam might secure favorable conditions from the Vietnamese government, potentially mitigating the financial impact.

Moreover, Samsung’s semiconductor assembly line in Suzhou, China, is already operational. With the U.S. and Vietnam elevating their relationship to a "comprehensive strategic partnership" in 2023, Vietnam’s investment landscape has seen notable improvements. Samsung's plans to establish an assembly plant in Vietnam are viewed as part of a broader strategy to reduce geopolitical risks and enhance the resilience of its global supply chain.