Vietnamese Prime Minister Visits Samsung Factory, Urges Investment Cooperation... Investment Clock Ticking Fast

On the 3rd, Pham Minh Chinh, Prime Minister of Vietnam (right), and Choi Ju-ho, Head of Samsung Electronics Vietnam Complex (Vice President, left), were having a conversation while touring the Samsung Electronics Thai Nguyen factory. (Photo by the Office of the Prime Minister of Vietnam)

[Asia Economy Reporter Jeong Hyunjin] Samsung's investment clock is ticking rapidly in Vietnam, considered a key production base alongside the United States. Although local factories have recently faced significant operational difficulties due to the impact of COVID-19, Samsung is reviewing additional investments to expand production capacity in high-growth potential sectors, expecting the issues to be resolved soon. Vietnamese Prime Minister Pham Minh Chinh has also promised support and agreed to cooperate closely.

According to the Vietnamese Prime Minister's Office and local media such as VN Express on the 6th, Prime Minister Chinh visited Samsung Electronics' Thai Nguyen factory on the 3rd and toured the local production facilities with Choi Ju-ho, Vice President and Head of Samsung Electronics Vietnam Complex. Prime Minister Chinh stated, "The Vietnamese government and people will ensure that foreign companies do not lose trust due to COVID-19," and requested Samsung to provide more resources and investments.

Prime Minister Chinh's visit to the Samsung factory is interpreted as an effort to strengthen investment cooperation with Samsung, which has been affected by COVID-19. Currently, Samsung Display is considering expanding the production capacity of the post-processing line in Bac Ninh Province, which produces foldable display modules, to respond to foldable phone panel production. This is in response to the surge in demand for foldable phone displays, driven by major clients such as Samsung Electronics' Galaxy Z Fold3 and Z Flip3. The market also expects an expansion of Samsung Electronics' smartphone production lines.

Additionally, Samsung is building the largest research and development (R&D) center in Southeast Asia in Vietnam, targeting completion next year. Prime Minister Chinh said, "I and the Vietnamese government ministers always listen to Samsung's opinions and proposals," and requested Samsung to accelerate the construction of the R&D center and appoint Vietnamese nationals to senior positions at the center. Vice President Choi responded that he would review the Prime Minister's request.

At the meeting, Prime Minister Chinh appeared conscious of the fact that Samsung's factories in Vietnam have seen operating rates drop below 50% due to the recent impact of COVID-19, explaining, "Vaccinations are being provided free of charge, and workers, including those at Samsung, are prioritized for vaccination," adding, "Ho Chi Minh City and the southern region, where Samsung Electronics' home appliance factories are located, are receiving vaccinations first."

Vietnam is Samsung's largest production base. Samsung Electronics produces smartphones at factories in Bac Ninh and Thai Nguyen provinces and manufactures TVs and home appliances at the Ho Chi Minh City factory. Samsung Display also operates a post-processing line in Bac Ninh Province, Vietnam.

This content was produced with the assistance of AI translation services.