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Samsung Display, a unit of Korean largest conglomerate Samsung Electronics, is planning to invest $3 billion in Vietnam, to enhance the display module production capacity.

The additional investment comes on top of its $1 billion OLED display plant in the northern Bac Ninh province, which has been put into operation in the first quarter of 2015, Reuters cited a source familiar with the matter.

DEALSTREETASIA had in April reported that Samsung Display was considering moving its LCD module business either to China or Vietnam, as it had separated the LCD and OLED manufacturing into separate business units.

Also read: Samsung considers moving LCD unit to Vietnam

Meanwhile, Samsung Electronics – Vietnam’s largest investor – expects the additional investment in its Vietnam-based display module plant to not only help build production capacity, but also to lower costs amid more intense competition in the smartphone market.

Samsung Display will spend its $3 billion over the course of 2015-2020, giving no specific allocation, the source, which required to remain anonymous, told Reuters.

Samsung Display’s annual capital spending has reportedly averaged 3.9 trillion won ($3.4 billion) in the past three years.

In November 2014, Samsung Electronics planned to expand its smartphone manufacturing facility in Vietnam by building a $3 billion second plant. The first one in Thai Nguyen province, which had an investment of $2 billion, started production in March 2014.

Most recently in May, Samsung kicked off its $1.4 billion hi-tech complex in Ho Chi Minh City, saying it will become an important link in its global TV supply chain, and would help the company retain its reputation of being the world’s largest TV producer.

The Korean chaebol has so far invested nearly $13 billion in Vietnam, and is planning to increase its total registered capital in the country to $20 billion by 2017. Last year, the country’s investment ministry said in a report that Samsung might seek involvement in some components of the $18.7 billion Long Thanh International Airport project located in the south of Vietnam.