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The Korea Herald
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THE INVESTOR
June 24, 2024

Samsung

Samsung doubles down on Vietnam

  • PUBLISHED :May 13, 2024 - 17:21
  • UPDATED :May 13, 2024 - 17:21
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Vietnamese Prime Minister Pham Minh Chinh (right) hosts a reception for Samsung Electronics Chief Financial Officer Park Hark-kyu at the Government Office in Ha Noi, Vietnam on Thursday. (VGP)

Samsung Electronics has pledged to increase its annual spending in Vietnam to $1 billion as the Southeast Asian country emerges as a strategic base for manufacturing in the region.

According to industry sources on Monday, Samsung Electronics Chief Financial Officer Park Hark-kyu on Thursday met with Vietnamese Prime Minister Pham Minh Chinh in Hanoi to discuss business collaborations.

During the meeting, the Samsung CFO noted how the company has invested $22.4 billion in Vietnam so far and shared plans to expand the investment to about $1 billion, annually.

Samsung has expanded local operations from manufacturing plants for smartphones to research and development facilities. More recently, the tech giant has been seeking to help local firms join its global production and supply chain network.

"In the past decade, the number of Vietnamese companies working with Samsung Electronics has increased over 12-fold, from 25 firms in 2014 to 309 companies now," Park was quoted as saying during the meeting.

"Samsung hopes to continue contributing to Vietnam's foreign trade and economic growth."

In response, the Vietnamese PM reportedly promised that his government will continue providing the optimal conditions for Samsung's business operation and its sustainable development "in the spirit of harmonizing interests and sharing risks."

Pham also suggested the Korean tech giant continue to consider Vietnam as a strategic base for manufacturing and exporting its key products to international markets since the country is a member of a number of trade initiatives including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership. Vietnam's free trade agreement with the European Union also took effect, the prime minister added.

Park hailed the investment and business climate of Vietnam and said Samsung will continue to stand side by side with the country on its development path.

Expressing appreciation for Samsung's investment and building of a research and development center in the country, Pham also asked the company to step up cooperation with Vietnamese tech companies, to involve them in its business ecosystem and also support startup and manpower training in the country.

Meanwhile, Hyosung Vice Chairman Lee Sang-woon also met with Vietnamese Deputy Prime Minister Le Minh Khai, and discussed its plan to build a data center in southern Vietnam.

According to VGP News, Vietnam's state-run news outlet, Lee asked the deputy prime minister to approve its plan to build a factory producing automated teller machines and a big data center in the high-tech industrial park in Ho Chi Minh City. Hyosung is the world's third-largest ATM manufacturer.

Hyosung is the third largest Korean investor in Vietnam after Samsung and LG Electronics. Since 2007, the company has invested over $4 billion in the Southeast Asian country, operating its businesses encompassing raw materials, textile, chemical and industrial electrical systems there.

Hyosung T&C recently received investment approval for its Hyosung BDO Project, under which the company plans to invest a total of 1 trillion won to establish a bio-butanediol production plant with an output of 200,000 tons per year.

By Jo He-rim (herim@heraldcorp.com)

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