PM asks Samsung to consider Việt Nam a global strategic base

December 23, 2022 - 17:04
Prime Minister Phạm Minh Chính asked Samsung Group to continue to expand investment and business activities, considering Việt Nam its important and global strategic base in terms of production, research and development of key products to the international market.
Prime Minister Phạm Minh Chính and representatives of Samsung Group press the button to inaugurate Samsung’s R&D Centre in Việt Nam. Photo courtesy of Samsung

HÀ NỘI — Prime Minister Phạm Minh Chính asked Samsung Group to continue to expand investment and business activities, considering Việt Nam a global strategic base in terms of production, research and development of key products for the international market.

Chinh made the request at the inauguration ceremony of Samsung’s new research and development (R&D) centre held in Hà Nội’s West Lake Urban Area on Friday.

Under construction since March 2020 at a total cost of US$220 million, the 16-storey facility sits on a site of over 11,603 sq.m, becoming the largest of its kind in Southeast Asia and one of the 18 Samsung R&D Centres across the world. In addition, Samsung R&D Centre is the first large-scale skyscraper specialising in technology development in Việt Nam established by an FDI enterprise.

Specifically, the construction process of this building was also at the time when the COVID-19 pandemic broke out in Việt Nam. However, Samsung has strictly complied with the Vietnamese Government's pandemic prevention and control regulations while ensuring the safety of approximately 1,300 employees working in construction every day. Thanks to that, the work was completed according to the plan with no occupational accidents.

At the same time, Samsung honoured the Vietnamese Government’s promise to inaugurate a new centre by the end of 2022.

Samsung plans to research and develop smartphones, tablets, hardware and software at the facility, employing about 3,000 workers.

Up to now, half of Samsung's total global supply of mobile phones is being produced in Việt Nam. The conglomerate is also developing and testing software for mobile devices and networks in the country.

The PM visits the display area of new products at the R&D Centre. VNA/VNS Photo Dương Giang

In his speech, PM Chính said that after 30 years of diplomatic relations, the relationship between Việt Nam and South Korea has been continuously consolidated and developed in many fields. The two countries have become each other's most important partners and a successful model based on sincerity and political trust; dynamism, flexibility and sustainability in economic cooperation.

Many large South Korean corporations have successfully invested, operated effectively and actively contributed to the socio-economic development of Việt Nam.

He hailed Samsung as the biggest Korean investor and also the biggest foreign investor in Việt Nam with a total registered capital of nearly $20 billion, contributing to Việt Nam’s export turnover, job creation and revenues to the State budget.

The launch of the R&D Centre in Hà Nội is evidence of Samsung’s orientations and commitments to long-term operations in the country, he said, adding that it is also a good start to deliver its close-ended production chain in electricity and electronics in Việt Nam.

On the occasion, the PM asked centrally-run agencies and local authorities to offer all possible support to foreign investors, including Samsung, to do business in Việt Nam effectively in the long term, in the spirit of harmonising interests and sharing risks.

He suggested Samsung step up specific cooperation activities in researching and linking with the network of Vietnamese experts and intellectuals at institutes, universities, technology enterprises and Việt Nam National Innovation Centre, so as to push ahead with technology projects that both meet Samsung's needs and create positive impacts on Việt Nam.

The Vietnamese leader wished that the tech giant would quickly prepare the necessary conditions for the early trial production of flip-chip ball grid array products, toward mass production at its factory in the northern province of Thái Nguyên from July 2023.

Việt Nam will continue creating favourable conditions for Samsung to do business effectively and sustainably in the country, he stressed.

Roh Tae Moon, President of Samsung Electronics Group, said: “I hope that the Samsung Research and Development Centre will become a cradle to nurture top IT talents of Việt Nam and the birthplace of world-leading technologies. I hope that the technological talents fostered and developed here will be a source of positive contributions to improving the industrial competitiveness of Việt Nam. Samsung will always be assertive to become a business loved by the Vietnamese people and will be a companion with Việt Nam on the journey toward the future."

In the future, Samsung plans to elevate the position of Việt Nam beyond its role as a global production base to become the strategic research and development base of Samsung globally.

Additionally, through the Research and Development Centre, Samsung hopes to actively contribute to the development of hardware (H/W) and software (S/W) in line with the advanced information technology sector and the Industrial Revolution 4.0.

Having started with a mobile phone factory in Bắc Ninh Province in 2008, Samsung has continuously boosted its investment in Việt Nam through the establishment of a second mobile phone factory in Thái Nguyên Province, a household goods production complex in HCM City. By the end of last year, the total construction investment in Việt Nam of Samsung reached $18.2 billion and is predicted to exceed $20 billion by the end of 2022.

The PM met with Samsung’s Executive Chairman Lee Jae-yong during a reception in Hà Nội. — VNA/VNS Photo

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Earlier, during a reception in Hà Nội for Samsung’s Executive Chairman Lee Jae-yong who came to Việt Nam for the inauguration of the R&D centre, PM Chính thanked Samsung for contributing to social welfare and the fight against COVID-19 in Việt Nam.

He suggested Samsung increase the local content of its products produced in Việt Nam and reduce imports. He also expressed hope that more Vietnamese could join Samsung’s leadership board in the country.

Lee, for his part, said Samsung will step up workforce training in Việt Nam to help them meet global working requirements, as well as work closely with Việt Nam to further enhance the local content in both hardware and software products and recruit more Vietnamese workers. — VNS