Prime Minister Nguyen Xuan Phuc has expressed hope Vietnam will remain Samsung’s global strategic production hub, especially as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU – Vietnam Free Trade Agreement (EVFTA) have become effective.
| Prime Minister Nguyen Xuan Phuc (right) and CEO of Samsung Vietnam Choi Joo Ho. Photo: VGP |
The Vietnamese government is committed to creating favorable conditions for South Korean investors, including Samsung, to stabilize production and expand operations in Vietnam in the coming time, Mr. Phuc said in a meeting with CEO of Samsung Vietnam Choi Joo Ho on August 11.
Mr. Phuc highly regarded the South Korean tech giant’s operations in Vietnam, particularly its realization of commitments to the country, including the construction of Samsung’s largest R&D center in Southeast Asia in Hanoi with an investment of US$220 million.
The Vietnamese prime minister welcomed Samsung’s efforts to maintain its business targets for this year, which would contribute to Vietnam’s dual target of containing the pandemic and boosting economic growth.
Vietnam continues to encourage projects that apply modern and clean energies with high spillover effects, commit to technology transfer, and help domestic firms further integrate into global supply chains.
At the meeting, Mr. Choi said Vietnam’s effective measures against the Covid-19 pandemic has been instrumental for Samsung Vietnam to maintain positive business performance.
Mr. Choi said Samsung looks forward to receiving support from the Vietnamese government so that the corporation could make greater contributions to Vietnam’s economic growth.
In 2008 - 2018, Samsung increased its investment in Vietnam from US$670 million to over US$17.3 billion, a 26-fold increase.
Samsung's statistics revealed around 50% of its smartphones and tablets are produced in Vietnam and exported to 128 countries and territories, including the US, Europe, Russia and Southeast Asia.
In 2019, four major subsidiaries of Samsung Vietnam generate a combined revenue of US$65.8 billion, a slight decline from US$67.1 billion recorded one year earlier, and made a profit of US$4.3 billion.