Samsung to operate own Hanoi terminal

Electronics giant Samsung is reportedly planning to operate its own air cargo handling terminal at Hanoi’s Noi Bai International Airport from late 2015 in order to streamline its expanding supply chain in Vietnam, according to Vietnam’s Thanhniennews.com citing a source from the Civil Aviation Authority of Vietnam.


Samsung to operate own Hanoi terminal


Electronics giant Samsung is reportedly planning to operate its own air cargo handling terminal at Hanoi’s Noi Bai International Airport from late 2015 in order to streamline its expanding supply chain in Vietnam, according to Vietnam’s Thanhniennews.com citing a source from the Civil Aviation Authority of Vietnam. The move is seen as a result of two key factors – the nascent state of air cargo supply chain facilities in the country and the extreme competitiveness of the global smartphone business.

The South Korean electronics giant has recently applied for a license to invest $3 billion in building a second smartphone factory in northern Vietnam, according to a report by Dau Tu, a newspaper controlled by Vietnam’s Planning and Investment Ministry quoting a senior official at the ministry. The plant is to be built in Thai Nguyen province, where Samsung opened a $2 billion smartphone plant in March.

Samsung has been increasing production in Vietnam to reduce costs and better compete with the lowpriced smartphones of Chinese rivals in particular. The company’s latest move would bring its total investment pledges in Vietnam this year to around $11 billion, according to the Dau Tu report. Mobile phones and accessories became Vietnam’s biggest cash earner last year, taking over textiles. In January- October this year, export revenue reached $19.2 billion, or around 15 per cent of the country’s total. Samsung’s first smartphone plant in Vietnam, built with an investment of $2 billion, generated $1.9 billion in export revenue in its first four months of operation.