Make Vietnam your largest strategic base, PM urges Samsung
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PM Nguyen Xuan Phuc has suggested that Samsung expands its scale to make Vietnam the group’s largest strategic base. Receiving Lee Jae Yong, vice chairman of Samsung Group, in Hanoi on Tuesday, Phuc said Samsung should not just stop at making Vietnam its largest smartphone production base.
He suggested the South Korean giant expands its business to other major fields like semiconductors, infrastructure and energy in Vietnam rather than focusing mainly on manufacturing and assembling electronic products, as it has been doing so far.
A statement posted on the government’s website cited the prime minister as saying that Samsung should work towards building its largest strategic base in the country.
He also wanted Samsung to continue providing practical support in terms of training and technology transfer to assist Vietnam’s supporting industry.
As Samsung is making a significant contribution to developing e-government in South Korea, the PM suggested it does the same for Vietnam.
He promised that the Vietnamese government will keep creating favorable conditions for Samsung’s operations in the country.
Samsung Electronics Co. has invested $17.3 billion in eight factories and one research and development center in Vietnam, creating jobs for more than 160,000 locals.
Exports from Samsung Electronics’ factories in Vietnam totaled $54 billion last year, it said.
In April, CEO Koh Dong-jin of Samsung Electronics told PM Phuc that the company was determined to further expand production in Vietnam.
He said Samsung will recruit more Vietnamese employees and develop electronics in smart cities in Bac Ninh province in the northern region and other places.
Samsung is the largest foreign investor in Vietnam and accounts for around a quarter of the country’s total export revenue. It operates two cellphone factories in Bac Ninh and Thai Nguyen provinces in northern Vietnam.
The factories produce around half of all the cellphones that Samsung supplies to the global market.
Questions & Answers
Q.What is the Vietnamese Prime Minister asking Samsung to do in the country?
What is the Vietnamese Prime Minister asking Samsung to do in the country?
PM Nguyen Xuan Phuc suggested Samsung expand its presence beyond smartphone production to include semiconductors, infrastructure, and energy. He wants Vietnam to become Samsung's largest strategic base and seeks support for e-government and technology transfer.
Q.What is Samsung's current investment and employment impact in Vietnam?
What is Samsung's current investment and employment impact in Vietnam?
Samsung Electronics has invested $17.3 billion across eight factories and one R&D centre in Vietnam. This has created jobs for over 160,000 local people and contributed significantly to the country's export revenue.
Q.Which areas of Vietnam currently host Samsung's primary manufacturing facilities?
Which areas of Vietnam currently host Samsung's primary manufacturing facilities?
Samsung operates two cellphone factories in the northern provinces of Bac Ninh and Thai Nguyen. These factories are responsible for producing approximately half of all Samsung cellphones supplied globally.
Q.How significant is Samsung's contribution to Vietnam's overall economy?
How significant is Samsung's contribution to Vietnam's overall economy?
Samsung is Vietnam's largest foreign investor, with its factories exporting goods worth $54 billion last year. The company accounts for around a quarter of the country’s total export revenue.
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