Samsung SDI, a subsidiary of Samsung Electronics, said on Thursday it received approval to build a $1 billion display module assembly plant in Vietnam. The plant, to be built in Bac Ninh province, will start operations in 2015.

Samsung SDI is a supplier of displays for Samsung Electronics's obile devices. The new plant will allow the comany to lower production costs, as Chinese rivals like Huawei Technologies and Lenovo are mounting a strong challenge in mid-to-low tier products.