In the past nine years, Vietnam has become Samsung’s largest production location with total investment is up to US$14.8 billion poured into Bac Ninh, Thai Nguyen provinces and HCM City.
According to Lee Cheol Ku, deputy head of personnel department under Samsung Electronics Vietnam Thai Nguyen (SEVT), two Samsung’s plants in Bac Ninh and Thai Nguyen provinces are employing 120,000 Vietnamese workers. The local workforce is set to reach 140,000 at the end of 2016. Along with its fast expansion in Vietnam, Samsung now accounts for some 17.5% of Vietnam’s export turnover, hitting $30B USD in 2015. A recent news reported that 50% of Samsung mobile phones are now made in Vietnam. The exansion of Samsung in Vietnam comes amid similar moves by other leading electronics firms operating in Vietnam, which include LG, Microsoft, Intel, Canon, Panasonic and Toshiba, helped by new free trade pacts and cheaper wages than China
According to the Hanoi People’s Committee, the R&D centre will contribute to the city’s socio-economic development and promote the electronic, telecommunications industries. SEV plans to build a 21-storey building on a three-hectare land plot and employ 2,000 employees in 2016 and eventually 4,000 in the upcoming years.