This combo photo shows the logos of South Korean electronics giants Samsung and LG. PHOTOS AFP HANOI South Korean electronics giants Samsung and LG plan to invest billions of dollars in Vietnam, according to state media reports and the Vietnamese government on Tuesday.
The announcement came after Samsung cut production of its phones in Vietnam twice this year in response to weaker global demand.
According to Vietnamese state media, Samsung Electronics, the largest foreign investor in Vietnam, will invest $2 billion more in the Southeast Asian country.
For the past five years, Samsung has produced about half of its phones in Vietnam and accounts for nearly a fifth of the country's total exports.
The additional investment will strengthen Vietnam as Samsung's key production site, according to the Vietnam News Agency, after a meeting between Vietnamese President Nguyen Xuan Phuc and company's chief executive Han Jong-hee on Tuesday in Seoul.
Samsung didn't respond immediately to a request for comment.
The Vietnamese government said in a statement that LG would invest $4 billion more in the country to make it a smartphone camera production hub.
The government statement and the state media report did not provide any more information about the investment by the two companies.
LG, which has invested $5.3 billion in Vietnam to make such products as electronics home appliances, cameras and car parts, did not respond immediately to a request for comment.
The announcement came as Vietnam and South Korea said on Tuesday they upgraded their relationship to a comprehensive strategic partnership. The two countries hope to raise bilateral trade to $100 billion next year, and to $150 billion a year by 2030, up from $78 billion last year.
Vietnam has emerged as one of the most attractive production hubs for electronics companies over the last decade, but the weakening global demand has resulted in production cuts this year.