Samsung Vietnam denied speculation smartphone production in the country would be diverted to India, where its parent plans to raise investment and boost output, VNExpress reported.

The subsidiary told VNExpress a report by The Economic Times (ET) was “unfounded” and Vietnam will “always be Samsung’s important production base in the world”.

Samsung was tipped by ET to be preparing to shift a large part of its device production to India from Vietnam and other countries. It reportedly submitted a plan to manufacture $40 billion worth of smartphones in the country over the next five years as part of a government incentive scheme.

VNExpress reports the tech giant constructed its first Vietnamese factory in 2008, with around half of all devices now made in the nation. In March, it began constructing a $220 million R&D centre.

Samsung also produces devices in Indonesia and Brazil: it halted manufacturing in China in late 2019, shifting production to other manufacturing sites to improve efficiency.