Dec 21, 2018 / 21:37

Samsung committed to long-term business in Vietnam

The Hanoitimes - In 2018, Samsung Vietnam’s exports are estimated to reach over US$60 billion, up 12% year-on-year and accounting for 25% of Vietnam’s total export turnover, the government portal reported.

Samsung is committed to a long-term business in Vietnam, according to Shim Wonhwan, outgoing CEO of Samsung Vietnam. 
 
Deputy Prime Minister Vuong Dinh Hue and Samsung Vietnam's outgoing CEO Shim Wonhwan. Source: VGP.
Deputy Prime Minister Vuong Dinh Hue and Samsung Vietnam's outgoing CEO Shim Wonhwan. Source: VGP.
Samsung Vietnam is aware of the importance in supporting Vietnamese enterprises in enhancing capabilities, which would lay the foundation for the sustainable development of Vietnam’s industrial sector, Shim said at a meeting with Deputy Prime Minister Vuong Dinh Hue on December 21. 

In 2018, Samsung Vietnam’s exports are estimated to top US$60 billion, up 12% year-on-year and accounting for 25% of Vietnam’s total export turnover. 

Lee Jae Yong, Samsung’s vice chairman, in his visit to Vietnam in October said the group considered Vietnam its largest production hub worldwide.

Shim hoped Samsung Vietnam would contribute more to Vietnam’s exports in the future, adding that he and his successor Choi Joo Ho have discussed about Samsung’s further contribution to Vietnam’s economy. 

As of present, the South Korean group has disbursed 90% out of the total registered capital of US$17.3 billion in Vietnam, at the same time forming an investment network between Samsung, its affiliates and Vietnamese enterprises. 

At the meeting, Hue expected Samsung to play a key role in strengthening the cooperation between Vietnam and South Korea. 

Hue said Vietnam has fulfilled all economic targets in 2018, with expected GDP growth rate ranging from 6.9 – 7%, while the country’s trade turnover is estimated at US$480 billion, up 12 – 13% year-on-year. 

Samsung has been contributing a big part in the overall economic performance of Vietnam, Hue stated. 

According to Hue, Vietnam focuses on attracting quality FDI projects, which would enable a high level of linkage between FDI enterprises and local ones. 

FDI enterprises, including Samsung, are an indispensable part of Vietnam’s economy, so the government would continue to support the development of the FDI sector, Hue said.

He expected Samsung to realize its strategy of transforming Hanoi into the group’s R&D center in the near future.