PM urges Samsung to invest in semi-conductor manufacturing plant in Vietnam

Prime Minister Nguyen Xuan Phuc has urged Samsung to consider investing in a semi-conductor manufacturing plant in Vietnam, which is one of the core businesses of the South Korean conglomerate besides smart phones and household appliances.

Prime Minister Nguyen Xuan Phuc (R) and Samsung Vice Chairman Lee Jae-yong (L). Source: VGP.

Such a decision would help complete Samsung’s production chain in the field of electronic production in the country, said Mr. Phuc in a meeting with Samsung’s Vice Chairman Lee Jae-yong on October 20.

According to Mr. Phuc, Samsung has effectively realized its commitment to Vietnam since the two’s previous meeting last November, especially in the construction of the conglomerate’s largest Southeast Asia R&D center in Hanoi.

Meanwhile, despite the Covid-19 pandemic, Samsung’s performance in Vietnam continues to be a success, Mr. Phuc noted.

As the localization rate of Samsung in Vietnam has been increasing, Mr. Phuc requested Samsung to continue supporting local enterprises further integrate in the South Korean giant's supply chain as well as in its R&D activities.

Overview of the meeting. Source: VGP.

Given the fact that Samsung is considering a potential investment destination for a hi-tech project, the PM suggested Vietnam is willing to create the most favorable conditions for Samsung to carry out such a project.

Vietnam is committed to accompanying Samsung during its strategic investment and business activities in the country, as both are aiming for a win-win scenario. This is especially important as the Vietnam – South Korea relations are growing strongly, while Vietnam is participating in a number of free trade agreements, including the EVFTA and the CPTPP.

Samsung’s Vice Chairman Lee Jae Yong thanked the Vietnamese government for the support for Samsung over the years.

The closure of Samsung’s plants in Vietnam would disrupt Samsung’s production chains globally, Mr. Lee noted. Amid the Covid-19 pandemic, the Vietnamese authorities have allowed over 3,000 experts from Samsung to enter Vietnam, Mr. Lee added.

Mr. Lee said the R&D center in Hanoi would start operation in late 2022. With over 3,000 engineers working at the center, this would be one of Samsung’s main R&D hub globally.

Samsung's vice chairman said he would inspect Samsung’s activities in Ho Chi Minh City to explore the possibility of expanding the operation there.