November 24, 2024

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Samsung Electronics Chairman Lee Jae-yong (left) shakes hands with Vietnamese Prime Minister Pham Minh Chinh in Seoul on Tuesday. (VGP News)

Samsung Electronics Chairman Lee Jae-yong on Tuesday renewed his commitment to boosting investment in Vietnam, where the company remains the biggest foreign investor, during a meeting with Vietnamese Prime Minister Pham Minh Chinh in Seoul on Tuesday.

In the private meeting, the Samsung chief pledged massive investment to set up the tech giant’s biggest display module production base in the Southeast Asian country over the next three years.

"Vietnam's success is Samsung's success, Vietnam's development is Samsung's development," Lee was quoted as saying in the meeting by VGP News, a Vietnamese state-run news outlet.

Expressing appreciation for Samsung's investment in the country, Pham affirmed the Vietnamese government's support and willingness to create favorable conditions for Samsung's “successful, effective and sustainable” business activities in the country.

"The ministers will be responsible for implementing the agreements between Vietnam and Samsung," Pham said, adding that the government is preparing to establish a new law to support foreign investment, especially in the fields of advanced technologies such as chips, artificial intelligence and R&D centers.

The government is preparing to issue a decree on direct purchase agreements and sales systems for electricity supply to create a favorable environment for investors, the minister said.

Pham also requested that Samsung continue to support Vietnamese companies in fostering their competitive edges and expand partnership, so that the domestic firms can effectively participate in the Samsung's value chain, and be part of the ecosystem for research and development.

Samsung stands as Vietnam's biggest foreign investor and largest exporter. The tech giant has invested $22.4 billion and hires a workforce of about 90,000 people. In 2023, Samsung Vietnam exported $55.7 billion, according to VGP News.

Samsung Group first tapped into the Vietnamese market in 1989, opening a trading office for Samsung C&T in Hanoi. The group now has manufacturing plants producing its smartphones, network equipment, TVs, displays and batteries in Vietnam.

In a welcoming dinner following the meeting, Pham was to meet with Lee and other business leaders, including Hyundai Motor Group Executive Chair Chung Euisun and SK Group Vice Chairman Chey Jae-won.

Pham is expected to visit Samsung Electronics' manufacturing headquarters in Pyeongtaek, Gyeonggi Province, on the last day of his trip Wednesday.

Jun Young-hyun, the vice chairman in charge of Samsung Electronics' semiconductors business, who accompanied Lee in Tuesday's meeting, will guide the prime minister on the Pyeongtaek campus tour, according to industry sources.

Arriving in Seoul on Sunday for a four-day trip, Pham also held individual meetings with chiefs of other leading Korean conglomerates to discuss ways to strengthen ties and future business cooperation.

On Monday, Pham met with Chung, the Hyundai Motor chief, and shared opinions on potential investment plans of the company that currently leads the automotive market in Vietnam. Hyundai Motor alone has invested $415 million in Vietnam, with 2,300 employees hired locally. Kia, another automaker brand under the group, forged a partnership with Vietnamese automaker THACO to transfer technology to produce and assemble its cars and auto parts at a factory in Quang Nam province.

The prime minister also held a one-on-one meeting with Hyosung Group Chairman Cho Hyun-joon to discuss the company's ongoing business projects concerning the chemical Bio-BDO as well as renewable energy and financial technology.

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