Samsung Chairman Lee Jae Yong has announced that the conglomerate will significantly increase its investment in Vietnam over the next three years to make its plant there the world's largest display module production hub.

Prime Minister Pham Minh Chinh and Samsung Chairman Lee Jae Yong. Photos: Nhat Bac

He shared the plan during a meeting with Prime Minister Pham Minh Chinh on July 2, while highlighting Samsung's thriving 16-year partnership with Vietnam.

"Vietnam's success is Samsung's success, and Vietnam's development is the development of the conglomerate," Lee stated.

Samsung Electronics has undertaken a long-term commitment to Vietnam, emphasizing a spirit of "harmonized benefits, shared risks."

At an earlier meeting with Prime Minister Chinh in mid-May, the Samsung boss revealed plans to invest an additional $1 billion annually in Vietnam.

The Prime Minister praised Samsung's business achievements in Vietnam and mentioned that the country is developing a decree on the establishment, management, and use of an investment support fund to ensure a stable, competitive, and attractive investment environment. These policies are aimed at attracting major investments in high-tech industries, semiconductors, AI, and R&D centers.

Chinh expressed his hope that Samsung would not only expand its investment but also diversify its supply chain, making Vietnam a strategic production and research hub for key products aimed at international markets.

Vietnam is also negotiating new free trade agreements (FTAs) to expand export markets to regions like the Middle East, South America, and Africa, which would help Samsung broaden its market for key products.

Overview of the meeting.

He urged Samsung to increase its localization rate, support Vietnamese businesses to integrate deeper into its value chain and assist Vietnam in training high-quality human resources in emerging fields, fostering innovation, and advancing science and technology.

In response, Lee mentioned that 310 Vietnamese companies are currently partners in Samsung’s production chain, a twelve-fold increase since 2014.

Approximately 2,500 engineers and researchers are working at Samsung's R&D center in Hanoi, including an AI research unit using languages other than Vietnamese. The conglomerate is also developing 5G equipment.

During the meeting, Chinh reiterated his hope that in the near future, Vietnamese individuals would join the leadership team of Samsung Vietnam, stating, "combining South Korean management technology with Vietnamese intelligence will undoubtedly lead to success."

He reiterated that the Vietnamese Government fully supports and will facilitate Samsung’s successful and sustainable investment and business operations in Vietnam. "Vietnamese ministers will be responsible for implementing the agreements between Vietnam and Samsung," the Prime Minister said.

Samsung is currently the largest foreign direct investor in Vietnam, with four plants in Bac Ninh, Thai Nguyen, and Ho Chi Minh City worth a total investment of over $22 billion. Mobile phones produced in Vietnam account for over 50% of Samsung's global production, with exports expected to increase by more than 10% this year from nearly $56 billion in 2023.

Prime Minister Chinh and his spouse are on an official visit to South Korea from June 30 to July 3 at the invitation of South Korean Prime Minister Han Duck-soo and his spouse.