Vietnam receives another multi-billion-dollar investment from Samsung
South Korean corporate giant Samsung will invest another $2.5 billion in Vietnam as it seeks to increase its TV display panel production in the country.
The investment will be done through Samsung Electronics’ display panel unit which got approval by the Vietnamese authorities to expand its existing production.
According to Vietnam’s VTV state television, the investment will enable Samsung to increase the production of display panels to 220 million units a year up from the current 180 million annually. With the new funding, Samsung Electronics’ total investment in Vietnam rises to $6.5 billion.
While Vietnam has been known in the past for being a manufacturer of clothing, it has been rapidly expanding into the technology and electronics sectors over the past few years and is now a major manufacturing hub for Samsung Electronics and its many subsidiaries. Apart from Samsung, other large foreign electronics manufacturers in Vietnam are Foxconn, Panasonic, LG, Intel and Jabil.
Low labour costs paired with a reasonably skilled workforce are the primary attractions for many foreign electronics manufacturers to invest in the country. While people in Cambodia, Laos and Myanmar earn less, those countries lack other benefits of Vietnam such as numerous government incentives, including corporate income tax reductions and tax holidays.
In turn, tech companies give the country a unique opportunity to absorb foreign technology and expertise. It also provides capital to fund much-needed improvements in infrastructure and education, as some companies appear keen to help develop local tech talent.
At the center of Vietnam’s electronics and IT industry stands Saigon Hi-Tech Park, which hosts a number of training facilities and attracts local entrepreneurs and start-up funded by venture capital. There is also an ongoing project to build Saigon Silicon City, a techno park located at the outskirts of Ho Chi Minh City being developed on land that previously was a rice farm.
South Korean corporate giant Samsung will invest another $2.5 billion in Vietnam as it seeks to increase its TV display panel production in the country. The investment will be done through Samsung Electronics' display panel unit which got approval by the Vietnamese authorities to expand its existing production. According to Vietnam's VTV state television, the investment will enable Samsung to increase the production of display panels to 220 million units a year up from the current 180 million annually. With the new funding, Samsung Electronics’ total investment in Vietnam rises to $6.5 billion. While Vietnam has been known in the...
South Korean corporate giant Samsung will invest another $2.5 billion in Vietnam as it seeks to increase its TV display panel production in the country.
The investment will be done through Samsung Electronics’ display panel unit which got approval by the Vietnamese authorities to expand its existing production.
According to Vietnam’s VTV state television, the investment will enable Samsung to increase the production of display panels to 220 million units a year up from the current 180 million annually. With the new funding, Samsung Electronics’ total investment in Vietnam rises to $6.5 billion.
While Vietnam has been known in the past for being a manufacturer of clothing, it has been rapidly expanding into the technology and electronics sectors over the past few years and is now a major manufacturing hub for Samsung Electronics and its many subsidiaries. Apart from Samsung, other large foreign electronics manufacturers in Vietnam are Foxconn, Panasonic, LG, Intel and Jabil.
Low labour costs paired with a reasonably skilled workforce are the primary attractions for many foreign electronics manufacturers to invest in the country. While people in Cambodia, Laos and Myanmar earn less, those countries lack other benefits of Vietnam such as numerous government incentives, including corporate income tax reductions and tax holidays.
In turn, tech companies give the country a unique opportunity to absorb foreign technology and expertise. It also provides capital to fund much-needed improvements in infrastructure and education, as some companies appear keen to help develop local tech talent.
At the center of Vietnam’s electronics and IT industry stands Saigon Hi-Tech Park, which hosts a number of training facilities and attracts local entrepreneurs and start-up funded by venture capital. There is also an ongoing project to build Saigon Silicon City, a techno park located at the outskirts of Ho Chi Minh City being developed on land that previously was a rice farm.
