The Prime Minister of Vietnam, Nguyen Xuan Phuc, has called on Samsung to build a new semiconductor production plant in the country.
During a meeting with Samsung Electronics Vice Chairman Lee Jae-yong on Tuesday 20 October, Prime Minister Nguyen said the plant would enable the company to have a closed production chain in Vietnam, where it already has smartphone and consumer electronics plants.
If agreed to, Prime Minister Nguyen promised Vietnam would create the best possible conditions for Samsung to invest in high-tech projects.
The Vietnam Government has also agreed to a proposal by Ho Chi Minh City to allow Samsung Electronics’ Ho Chi Minh City Complex to become an export processing company, enabling it to expand and strengthen its global competitiveness.
This isn’t the first time Prime Minister Nguyen has made this request, as last year a similar proposal was made when the two met in Seoul.
It is unclear how Mr. Lee responded, but Samsung will have a key Hanoi-based research and development facility operational by late 2022, which will create up to 3,000 engineering jobs. The R&D facility will be the first of its kind outside of South Korea, and will cost US$220 million.
Mr. Lee also thanked the Vietnam government for granting visas to over 3,000 Samsung engineers this year, despite COVID-19 restrictions.
Vietnam is Samsung’s largest smartphone production base, with half of all its phones being made in the country. It has invested over US$17 billion in Vietnam so far, making Samsung the single largest foreign investor in the country.
Vietnam’s exports of smartphones and spare parts, mostly produced by Samsung Electronics, rose 4.4% last year to US$51.38 billion, according to the General Statistics Office.
Vietnam has set ambitious targets to become a digital society by experimenting with new technologies and setting a target of having 10 big IT businesses with revenues of over US$1 billion.
Prime Minister Nguyen approved the National Digital Transformation Programme, which strives to completely renovate Government operations and stimulate a digital economy by 2030.