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SCIENCE & TECH
Nov 30, 2017 / 18:00

Samsung launched second R&D center in Vietnam

Nguyen Tung

Samsung has launched the Executive Briefing Center and Samsung Ho Chi Minh Research & Development Center in the Saigon Hi-Tech Park. Investment builds on success of exporting smartphones from Southeast Asian hub.

Samsung Electronics has finished construction of Executive Briefing Center or EBC, and Samsung Ho Chi Minh Research & Development Center or SHRD, a research and development center located in Samsung Electronics Ho Chi Minh city (SEHC) that will focus on cutting-edge technologies for use in household appliances and electronics. As such, the EBC is considered to be the biggest of its kind in South East Asia. 
 
Samsung's second R&D center will focus on developing home appliances.
Samsung's second R&D center will focus on developing home appliances.
The South Korean company spent $600 million to build the center, its second Vietnamese R&D facility after one in Hanoi. About 400 engineers and other staff will develop technologies for washing machines, vacuum cleaners, refrigerators, internet-connected smart TVs and audiovisual equipment, as the first Samsung R&D center is focused on researching smart devices and applications. The SHRD will support research centers in Korea to design and modify functions of products for each market. The products designed and produced in SHRD and SEHC will export to 64 countries and regions all over the world. 

Moreover, SHRD will have multiple laboratories along with the production site to timely support and assist in technical aspects and quality of products. These labs include: Mold center, Automation, Facility, QA Test lab, Curcuit, Software, Modelling and 3D Scanning. At present, the center have 400 personnel, which is estimated to have a total of 500 staffs by 2020, who are mainly Vietnamese. 
 
The first Samsung R&D center in Vietnam is located in Hanoi with total investment of 300 million USD.
The first Samsung R&D center in Vietnam is located in Hanoi with total investment of 300 million USD.
Samsung has sought to strengthen production of home appliances in Vietnam to add to already brisk smartphone output in the country. The center, situated on a 5,000-sq.-meter lot inside the Saigon Hi-Tech Park in the country's south, will play a central role in this effort. EBC is equipped with the most modern products of Samsung to simulate smart solutions and utilities for enterprises in fields of transportation, entertainment, fashion, smart restaurants – hotels, smart enterprises, smart education, smart factories, smart home, System Aircon. 

The company has two massive smartphone plants in the country that account for roughly 30% of its global output. Samsung smartphones make up a fifth of Vietnam's total exports in value terms. These investments are part of Samsung’s plan to expand its support to hi-tech industries, helping local firms to produce sophisticated electronic parts and be part of Samsung’s global supply chain for hi-tech products. It is aimed to help enterprises improve their production process and meet the criteria for supplying products and components to Samsung factories with products’ error ratio decreasing by an average of 25 per cent and production capacity increasing by 30 per cent.

Samsung is investing heavily for R&D. At present, Samsung has a total of 34 R&D centers all over the world, contributing to the company’s 1/5 workforce. It is estimated that Samsung spends 34.8 million USD in R&D activities. In 2016, Samsung spent 12.7 billion USD for these activities alone. According to Scoreboard, Samsung is one of the companies spending heaviest for R&D activities. 

As the ranks of middle-income consumers grows in Vietnam, home appliance sales are on the rise. And the ASEAN Economic Community will eliminate tariffs on trading between member states starting in 2018, likely fueling a rise in exports.

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