Samsung
has become the largest investor in Vietnam by setting up factory to produce
electronics products in Vietnam and then export to more than 50 countries in
the world.
According
to Mr Hyun Woo Bang – Deputy General Director of Samsung Vietnam, the cheap and
abundant labor source is not the main reason leading to the decision to expand
Samsung’s investment in Vietnam.
In
a recent meeting with the Ministry of Information and Communications, a leader
of Samsung has revealed that each 100 employees in the mobile segment of
Samsung, there are 80 Vietnamese. Currently, the corporation is employing
around 130,000 employees in Vietnam.
In
1995, Samsung started to invest in Vietnam, so far has been 21 years. Since
2008, Samsung has formally invested in mobile phone manufacturing factory.
Currently, Samsung has about 130,000 Vietnamese workers. There were so many
people questioning if Samsung invested in Vietnam because of cheap labor.
However, labor is not the most important factor. In terms of labor resources,
Vietnam is not the richest country in comparison with India. Regarding labor
costs, there are many other countries in the region also having cheaper labor
costs than Vietnam. The quality of Vietnam’s labor is also not the best in
comparison with surrounding countries.
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Samsung
invests in Vietnam is a strategic decision of the corporation based on the
economic developments, tax policy, stable political factor, labor sources, the
ability to import raw materials…
So
far Samsung has invested nearly 15 billion USD in Vietnam. The two largest
projects of Samsung in Vietnam are Samsung Electronics Vietnam (SEV) with an
area of 110 ha in Yen Phong, Bac Ninh and Samsung Electronics Vietnam Thai
Nguyen (SEVT) on an area of 170 ha in Pho Yen, Thai Nguyen. These two factories
are producing and assembling mobile phone, tablet and phone components.
Products from these factories will be exported to more than 50 countries and
territories worldwide.
In
addition, Samsung has recently invested more than 3 billion USD in Samsung
Display (Bac Ninh); 300 million USD in R&D center specialized in
researching and innovating new products.
In
2015, Samsung exported about 32.5 billion USD and two factories in Bac Ninh has
provided 200 million mobile phones globally. In 2016, the factory in Ho Chi
Minh City and Samsung Display will continue to go in operation with great
outputs providing to the global market.
Vietnam
has become the largest smart phone manufacturing headquarter in the world.
Samsung has 9 factories and investing in many countries, but their investment
in Vietnam is the largest.
In
many countries around the world, the
businessenvironment of Vietnam is very stable. Perhaps because
of large investments, Samsung always get the support from the Government and
local authorities. Currently, there is a shift of capital flows of
multinational corporations from one country to another. Therefore, Vietnam
should base on the new context to offer attractive strategy accordingly.
ANT
Consulting is here to assist you from the outset; providing corporate
intelligence, risk advisory, management consulting services that assist
market entrance, and ensure efficient business start-up operation. Our
services are as following:
We
strive to save your cost by guiding you towards economical solutions that
comply with local legislation and procedures. We support you through early
logistic solutions and carry you through as your business grows. We aim to bridge the gap between
international best practices and local cultures and assist foreign companies
and organizations entering Vietnam market to overcome commercial and regulatory
issues.
We could be reached at
email: ant@antconsult.vn or
tel: +848 3520 2779 . To learn more about us, please visit www.antconsult.vn
Further
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