Samsung to pour US$1 billion annually into Vietnam

Samsung plans to invest US$1 billion annually in Vietnam, Park Hark Kyu, President and Head of Corporate Management Officer (CFO) of Samsung Electronics Co. announced on May 9 at a meeting with Prime Minister Pham Minh Chinh.

Park Hark Kyu, President and Head of Corporate Management Officer (CFO) of Samsung Electronics Co. (L) and Prime Minister Pham Minh Chinh. Photo: VGP

He said that Samsung would further increase Vietnamese companies' participation in its supply chain and strengthen cooperation in workforce training.

During the meeting, Prime Minister Pham Minh Chinh expressed his desire for Samsung to further support Vietnam in building the capacity of domestic enterprises to effectively participate in the group's supply chain. 

He also urged the group to strengthen cooperation to integrate Vietnamese digital technology enterprises into Samsung's ecosystem.

The Group will work closely with the Ministry of Planning and Investment to implement substantial and effective training courses at the National Innovation Center based on cooperation agreements between the two parties.

The Prime Minister also encouraged Samsung to increase investment, expand research and development centers, support startup activities, and promote innovation in Vietnam. 

He also urged the group to identify Vietnam as a strategic manufacturing and R&D hub for its key products in the international market, especially in the context of the effective implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP).

For his part, Park Hark Kyu said that since 2014, the number of Vietnamese tier 1 and tier 2 businesses participating in Samsung's supply chain has increased 12-fold, reaching 309.

Samsung is currently the largest foreign direct investor in Vietnam, with major projects in Bac Ninh, Thai Nguyen and Ho Chi Minh City worth up to US$22.4 billion.

Vietnam is Samsung's largest mobile phone manufacturing base, accounting for more than 50% of the company's global production.

In 2023, Samsung's revenue and exports reached $65 billion and $55.7 billion, respectively. Its export revenue is expected to grow by over 10% in 2024 compared to 2023.