Samsung Electronics, the largest single foreign investor in Vietnam, will raise its total investment to $20 billion from $18 billion, Reuters reports citing the Vietnamese government.
Samsung slashed smartphone production in Vietnam twice this year due to weaker global demand.
Samsung has for years produced about 50% of its smartphones in Vietnam, accounting for nearly 20% of the country's overall exports.
The additional investment will further solidify Vietnam as Samsung's key production site following a meeting in Seoul between Vietnamese President Nguyen Xuan Phuc and the company's CEO, Han Jong-hee.
LG also earmarked $4 billion more in the country to make it a smartphone camera production hub.
LG has invested $5.3 billion in Vietnam to make products like electronics, home appliances, cameras, and car parts.
Vietnam and South Korea upgraded their relations to a "comprehensive strategic partnership."
They aimed to raise bilateral trade to $100 billion next year and $150 billion a year by 2030, up from $78 billion last year.
Over the last decade, Vietnam has emerged as one of the electronics companies' most attractive production hubs.
China's COVID controls and the regulatory clampdown on tech giants proved to be a deal breaker for the country as companies shifted production to convenient territories.
A collective outcry from people across China against its COVID controls led to partial redemption from China's government.
Nationwide protests translated into gradual ease in restrictions signaling possible economic reopening as it treaded into the fourth year of the pandemic.
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