Samsung’s smartphone factory in Vietnam 

At a meeting with Vietnamese Minister of Industry and Trade Nguyen Hong Dien last week, Choi Joo Ho, CEO of Samsung Vietnam, suggested that the ministry support the company to join the direct power purchase agreement (DPPA).

Nguyen Anh Tuan, director of the Electricity Regulatory Department, said the Ministry of Industry and Trade welcomes all companies meeting the requirements to participate in the DPPA. Besides Samsung, three or four other big companies also want to join the program.

According to the ministry’s DPPA draft, manufacturing companies with minimum 22 kV power lines will negotiate and buy electricity directly from power plants. They must be committed to using renewable energy and buying at least 80% of the agreed amount of power in accordance with the contract in the first three years.


Solar and wind farms with a capacity of at least 30 MV are eligible to join the agreement. They will have to begin commercial operation within nine months of joining the program. Besides, they must have documents proving financial support from credit institutions.

With a total capacity of some 1,000 MW, the DPPA pilot program is set to start this year and run until 2023.

Samsung is the single-biggest source of exports from Vietnam. Production in Vietnam accounts for half of the smartphones shipped globally by the South Korean electronics giant.