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Samsung Electronics' display unit considers building Vietnam factory

SEOUL (Reuters) - A unit of South Korea's Samsung Electronics said on Tuesday that it was in talks with the Vietnam government over building a factory to make display modules for mobile phones.

Samsung Electronics, a close rival to Apple Inc, is ramping up production in low-cost Vietnam, amid an intensifying price war in the smartphone market.

South Korea's Yonhap News Agency said Samsung Display was considering an investment of $1 billion to build the plant by 2020.

A Samsung Display spokesman declined to comment on the size of the investment.

He said the company was considering building the factory in Bac Ninh province, where Samsung Electronics already has mobile phone production facilities.

(Reporting by Hyunjoo Jin; Editing by Erica Billingham)