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Visiting Vietnamese President Nguyen Xuan Phuc will maintain a summit assembly with Korean President Yoon Suk-yeol in Seoul on Dec. 5. The assembly might be reportedly attended by the heads of main Korean conglomerates equivalent to Samsung, Hyundai Motor, LG and Lotte. A big-scale financial delegation was included within the Vietnamese delegation to Korea this time, so a deep dialogue on enterprise and funding cooperation is predicted to happen by way of this assembly.
Samsung Electronics chairman Lee Jae-yong is predicted to take part within the assembly. Lee met with Vietnamese chief for 3 consecutive years from 2018 to 2020 when he was the Vietnamese prime minister. As Samsung Electronics is the most important international investor in Vietnam, a dialogue on increasing funding in Vietnam is predicted to happen at this assembly. In October 2020, Lee inspected the development web site of a Samsung R&D middle in Vietnam and disclosed an funding enlargement plan at a non-public assembly with then Prime Minister Phuc.
The visiting Vietnamese president is extremely more likely to ask Lee to arrange a semiconductor plant in Vietnam. Vietnam is searching for to draw funding from international chipmakers, who’re affected by the current U.S.-China battle. Vietnam already has the expertise of attracting a manufacturing facility from U.S. semiconductor big Intel. Intel’s complete funding in Vietnam alone is US$1.5 billion. Intel employs 2,800 folks in Vietnam.
Particularly, President Phuc already requested Lee to construct a semiconductor plant in Vietnam 3 times — October 2018, November 2019 and October 2020.
Semiconductor trade watchers say that Vietnam is enticing by way of eco-friendliness in addition to labor prices. For Samsung Electronics, which introduced a new environmental administration technique in September, Vietnam is an efficient candidate for rising the usage of renewable power. Based on a survey by world power assume tank Ember, Vietnam raised the proportion of renewable power above 10 p.c for the primary time in 2021. Which means Vietnam has a large hole with Korea, which logged solely 4.67 p.c final yr.
“Samsung Electronics will endure a big gross sales loss if it fails to satisfy the usage of renewable power demanded by abroad clients,” an trade insider mentioned. “Abroad plant enlargement holds the important thing to attaining RE100 and avoiding main international locations’ protectionist commerce obstacles.”
It is usually noteworthy that Samsung enjoys an in depth partnership with Vietnam. Presently, Samsung is operating a complete of six manufacturing firms, one gross sales company, and one R&D middle in Vietnam. As of June this yr, Samsung Electronics’ complete funding in Vietnam exceeded US$20 billion, about 30 occasions the US$607 million invested in Bac Ninh in 2008.
In the meantime, Samsung Electronics will full its Vietnamese R&D middle, the most important in Southeast Asia, in Hanoi, Vietnam, on the finish of December. The US$220 million middle may have 2,200 workers and can give attention to the event of cellular terminals, networks, and software program. Lee is thought to be contemplating attending the Vietnam R&D middle completion ceremony on the finish of this yr.
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