Samsung to invest $300 million in new R&D center in Vietnam

Samsung VietnamSouth Korea’s electronics giant Samsung received approval from the Vietnam government to build a $300 million research and development center in the capital Hanoi. The move comes after news emerged that Apple is considering to invest $1 billion into a Vietnam-based data center which would serve the entire region, and Goldman Sachs together with Standard Chartered increased their private equity financing of Vietnamese start-ups.

Samsung’s new facility is planned to become operational in 2019. The 21-storey R&D center will cover three hectares, employ about 6000 people and develop high-tech electronic and telecommunication products. It will also operate rent-free for 50 years.

Vietnam has become one of Samsung’s biggest production hubs, and the firm has invested almost $15 billion in two production facilities in the country’s north, and another one in Ho Chi Minh City. In 2014, Samsung started building a $560-million industrial complex in northern Vietnam to produce consumer electronic. Much of its TV production is supposed to move there from Thailand.

Making Samsung products has helped Vietnam replace clothing and footwear with better-valued smartphone and electronics manufacturing as the country’s largest source of export revenue. Smartphone exports alone were worth $30 billion in 2015, making up 18.6 per cent of the country’s total export revenue

The interest of global firms in Vietnam is widely seen as a result of the country joining the Trans-Pacific Partnership (TPP) of which South Korea is a potential member. The company’s expansion comes amid similar moves by electronics and computer firms operating in Vietnam, including LG, Microsoft, Intel, Canon, Panasonic and Toshiba, helped by the TPP and other new free trade pacts, as well as and cheaper wages than in China and most other Southeast Asian countries.



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South Korea's electronics giant Samsung received approval from the Vietnam government to build a $300 million research and development center in the capital Hanoi. The move comes after news emerged that Apple is considering to invest $1 billion into a Vietnam-based data center which would serve the entire region, and Goldman Sachs together with Standard Chartered increased their private equity financing of Vietnamese start-ups. Samsung's new facility is planned to become operational in 2019. The 21-storey R&D center will cover three hectares, employ about 6000 people and develop high-tech electronic and telecommunication products. It will also operate rent-free for 50...

Samsung VietnamSouth Korea’s electronics giant Samsung received approval from the Vietnam government to build a $300 million research and development center in the capital Hanoi. The move comes after news emerged that Apple is considering to invest $1 billion into a Vietnam-based data center which would serve the entire region, and Goldman Sachs together with Standard Chartered increased their private equity financing of Vietnamese start-ups.

Samsung’s new facility is planned to become operational in 2019. The 21-storey R&D center will cover three hectares, employ about 6000 people and develop high-tech electronic and telecommunication products. It will also operate rent-free for 50 years.

Vietnam has become one of Samsung’s biggest production hubs, and the firm has invested almost $15 billion in two production facilities in the country’s north, and another one in Ho Chi Minh City. In 2014, Samsung started building a $560-million industrial complex in northern Vietnam to produce consumer electronic. Much of its TV production is supposed to move there from Thailand.

Making Samsung products has helped Vietnam replace clothing and footwear with better-valued smartphone and electronics manufacturing as the country’s largest source of export revenue. Smartphone exports alone were worth $30 billion in 2015, making up 18.6 per cent of the country’s total export revenue

The interest of global firms in Vietnam is widely seen as a result of the country joining the Trans-Pacific Partnership (TPP) of which South Korea is a potential member. The company’s expansion comes amid similar moves by electronics and computer firms operating in Vietnam, including LG, Microsoft, Intel, Canon, Panasonic and Toshiba, helped by the TPP and other new free trade pacts, as well as and cheaper wages than in China and most other Southeast Asian countries.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Personal Info

Donation Total: $10.00

 

 

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