Samsung Looks to Expand to Telecom Industry in Vietnam

Samsung has become the biggest investor in Vietnam, creating more than 130,000 jobs.

South Korean tech giant Samsung Electronics has shown interest in expanding its operation to the telecommunications industry in Vietnam as the tech-savvy population in the Southeast Asian country is growing fast.

The company’s President and CEO Shin Jong-kyun revealed the intention at a meeting with Vietnamese Prime Minister Nguyen Xuan Phuc in Hanoi on Friday.

After entering Vietnam ten years ago, Samsung has emerged as the largest foreign investor in the country, with a total of $17 billion so far. Its phone producing plants in Vietnam are also its largest and most modern globally.

Samsung’s exports are expected to reach $50 billion this year, making up 20% of the country’s total export revenue. It aims to have up to 50 Vietnamese tier-1 suppliers in the coming three years, compared to 29 currently, Shin said.

“We expects to get more support from the Vietnamese government and the prime minister so that Samsung can make greater contributions to Vietnam’s development,” the executive said, adding that the company has paid much attention to research and development as well as training of Vietnamese engineers.

In response, Prime Minister Nguyen Xuan Phuc stressed that Vietnam always supports and creates all optimal conditions for foreign investors, including Samsung, to run business in Vietnam.

He expressed hope that Samsung will continue expanding its business in Vietnam, in fields that the company has competitive edge, in addition to electronics.

The prime minister asked the firm to continue providing assistance to human resources training and technology transfer in Vietnam, so that auxiliary businesses, especially small and medium-sized ones, can become Samsung’s providers.

In addition, Phuc asked Samsung to launch its R&D center, which is set to be built in Hanoi at a cost of $300 million, on schedule.

Samsung now has six factories in Vietnam, producing a wide range of products, from smartphones to LCD screens, and household appliances, which are exports to 52 countries and territories by the end of 2016.

A strong increase in Samsung activity, especially the production of its star product Galaxy Note 8, helped spur Vietnam’s economic growth to 7.46% in the third quarter this year.

Tuan Minh / BizLIVE