Samsung says Vietnam is ‘global manufacturing hub’
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Samsung considers Vietnam a global manufacturing hub and wants to make it a center of research and innovation, the South Korean giant’s CFO, Park Hark Kyu, has said.
In a meeting with Prime Minister Pham Minh Chinh Thursday, he said he highly regarded Vietnam’s investment and business environment. Samsung wants to make Vietnam the “center of centers” for research and development.
Last year the company set up an R&D center in Hanoi and provided training to ensure there would be more Vietnamese in its leadership ranks.
Over 2,000 engineers work at the center.
The number of level 1 and 2 Vietnamese suppliers in Samsung’s global supply chain has increased tenfold since 2014, from 25 to 257.
Park also spoke to Chinh about the use of “made in Vietnam” products, and the global minimum tax.
Chinh hailed Samsung’s business activities in Vietnam as helping shift the country’s economic structure, promoting exports and creating millions of jobs.
Last year Samsung’s profits in Vietnam topped US$4.6 billion. It has invested $18 billion in the country so far, and is planning to increase it to $20 billion.
Questions & Answers
Q.What is Samsung's long-term strategic goal for its operations in Vietnam?
What is Samsung's long-term strategic goal for its operations in Vietnam?
Samsung views Vietnam as a global manufacturing hub and aims to develop it into a central location for research and innovation. This includes establishing it as the 'center of centers' for research and development.
Q.How has Samsung been supporting local Vietnamese businesses within its supply chain?
How has Samsung been supporting local Vietnamese businesses within its supply chain?
The number of Vietnamese suppliers at levels 1 and 2 in Samsung's global supply chain has significantly grown. There has been a tenfold increase, rising from 25 in 2014 to 257 currently.
Q.What is the current scale of Samsung's financial investment and profitability in Vietnam?
What is the current scale of Samsung's financial investment and profitability in Vietnam?
Samsung has invested $18 billion in Vietnam to date and plans to increase this to $20 billion. Last year, the company's profits generated in the country exceeded US$4.6 billion.
Q.How is Samsung addressing the development of local talent for its leadership roles?
How is Samsung addressing the development of local talent for its leadership roles?
Samsung set up an R&D centre in Hanoi last year and has been providing training. This initiative aims to ensure that more Vietnamese individuals can take on leadership positions within the company.
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