Samsung may set up a semiconductor plant in Vietnam

On December 5, Korean President Yoon Suk-yeol and visiting Vietnamese President Nguyen Xuan Phuc met at a summit in Seoul. The leaders of significant Korean businesses including Samsung, Hyundai Motor, LG, and Lotte are allegedly attending the summit.

As the top international investor in Vietnam, Samsung Electronics, a debate on increasing investment in Vietnam was at this conference. In a private meeting with the then-prime minister Phuc in October 2020, Lee visited the site of a Samsung R&D facility being built in Vietnam and revealed an investment growth plan.

The president of Vietnam, who is currently in town, is quite likely to invite Lee to build a semiconductor facility there. Foreign chipmakers looking to invest in Vietnam are those who are impacted by the current U.S.-China conflict.

Vietnam had prior success luring a facility from American semiconductor juggernaut Intel. Intel has made a total of S$1.5 billion in Vietnam. 2,800 people work for Intel in Vietnam.

Observers in the semiconductor sector claim that Vietnam is appealing due to both labor prices and environmental friendliness. Vietnam is a promising contender for growing the use of renewable energy, according to Samsung Electronics, which unveiled a new environmental management plan in September.

Vietnam increased its share of renewable energy beyond 10% for the first time in 2021, according to a study by the international energy think group Ember. In comparison to Korea, which recorded just 4.67 percent last year, Vietnam has a significant disparity.

It is also significant that Samsung and Vietnam have a good working relationship. Samsung currently has six production companies, one sales company, and one R&D facility operating in Vietnam. The entire amount invested by Samsung Electronics in Vietnam as of June this year was over $20 billion, which is almost 30 times the $607 million invested in Bac Ninh in 2008.

The biggest R&D facility in Southeast Asia will be completed by Samsung Electronics in Hanoi, Vietnam, by the end of December. The $220 million facility, which will employ 2,200 people, will concentrate on creating mobile networks, software, and terminals. At the end of this year, when the Vietnam R&D center will officially open, Lee is considering attending.

Source: BusinessKorea