30th Anniversary of Korea-Vietnam Diplomatic Relations... From Samsung Production Base to R&D Hub Role (Comprehensive)

Samsung R&D Center in Vietnam Inauguration Ceremony on the 23rd... Chairman Lee Jae-yong Attends
"Contributing to the Promotion of Bilateral Friendly Cooperation"

Samsung Electronics Chairman Lee Jae-yong visited Samsung Display Vietnam (SDV) near Hanoi, Vietnam, on the 22nd to inspect the display production factory.
[Photo by Samsung Electronics]

[Asia Economy Reporters Sunmi Park and Yeju Han] Samsung Electronics Chairman Lee Jae-yong attended the inauguration ceremony of the Samsung Research & Development (R&D) Center in Vietnam on the 23rd and expressed his commitment to contributing to the promotion of friendly cooperation between Korea and Vietnam. This year marks the 30th anniversary of diplomatic relations between Korea and Vietnam (established on December 22, 1992). Samsung plans to position Vietnam, which serves as a global production hub, as a global strategic base that also undertakes comprehensive research and development.

◆ A comprehensive business hub from production to research = Chairman Lee attended the inauguration ceremony of the Samsung Vietnam R&D Center located in the THT district of Hanoi at 8 a.m. local time and stated, "It will contribute not only to strengthening Vietnam's industrial competitiveness but also to enhancing friendly cooperation between Korea and Vietnam." The event was attended by Samsung executives including Samsung Electronics President Roh Tae-moon and Samsung Display President Choi Joo-sun, as well as key Vietnamese figures such as Prime Minister Pham Minh Chinh. Park Hang-seo, the coach of the Vietnam national football team, also sent a congratulatory video message.

Samsung Electronics Chairman Lee Jae-yong (center) attends the completion ceremony of the Vietnam Samsung R&D Center in the THT district of Hanoi, Vietnam, on the 23rd and poses for a commemorative photo. (Photo by Samsung Electronics)

The Samsung Vietnam R&D Center is a 16-story building above ground and 3 stories underground, making it the first large-scale comprehensive research institute established by a global company in Vietnam. In addition to state-of-the-art research facilities, it is equipped with various welfare facilities for employees, including a fitness center, cafeteria, rooftop garden, and club rooms. In the future, over 2,200 researchers will be stationed here to conduct research on smart devices, network technologies, and software. Samsung plans to strengthen the expertise of the Vietnam R&D Center by specializing in core technologies of software for mobile devices, such as multimedia information processing and wireless communication security.

Samsung initially produced mainly mid- to low-priced products in Vietnam but has gradually expanded its investments. Currently, it manufactures the latest foldable smartphones, 4G and 5G network communication equipment, TVs, displays, camera modules, and batteries. Notably, Vietnam serves as a 'global production hub' producing nearly half of Samsung Electronics' total smartphone sales volume. However, with the inauguration of the R&D Center, Vietnam is transforming into a comprehensive business hub responsible for both production and research. It will serve as a hub for Samsung's future research and development. Chairman Lee personally inspected the site during the center's groundbreaking in 2020 and devoted considerable effort to its establishment, even discussing cooperation plans with President Nguyen Xuan Phuc.

Samsung Electronics Chairman Lee Jae-yong is inspecting the smartphone manufacturing plant at Samsung Electronics Vietnam (SEV) near Hanoi, Vietnam, on the 22nd.
[Photo by Samsung Electronics]

◆ Contributing to the promotion of friendly cooperation between Korea and Vietnam = Around the inauguration ceremony of the Samsung R&D Center, Chairman Lee visited Samsung facilities near Hanoi, inspected smartphone and display production plants, reviewed business status and mid- to long-term management strategies, and took time to encourage employees.

Samsung first entered Vietnam in 1989 when Samsung C&T's trading division established an office in Hanoi and began exploring trade projects. Later, in 1995, Samsung Electronics set up a TV production plant and sales corporation in Ho Chi Minh City in southern Vietnam and started producing and selling TVs. Samsung's investment in Vietnam accelerated following the 2005 'Hanoi Summit' between the late Chairman Lee Kun-hee and former Vietnamese Prime Minister Phan Van Khai. At that time, Chairman Lee judged that Vietnam had achieved rapid growth since transitioning to a market economy in 1986 and that greater synergy could be realized through economic cooperation between the two countries, leading to the decision to expand investment in Vietnam.

Samsung Electronics Chairman Lee Jae-yong (right) and Vietnamese Prime Minister Pham Minh Chinh are seen having a conversation and taking a commemorative photo ahead of the inauguration ceremony of the Vietnam Samsung R&D Center. (Photo by Samsung Electronics)

Over the next decade, Samsung Electronics, Samsung Display (2014), Samsung SDI (2009), and Samsung Electro-Mechanics (2013) entered Vietnam. Currently, Samsung's electronics affiliates operate six production corporations, one sales corporation, and one R&D center in Vietnam. Beyond electronics affiliates, Samsung Life Insurance (2008), Samsung Fire & Marine Insurance (2002), Samsung C&T Construction (2013), Samsung Engineering (2013), Cheil Worldwide (2011), and Hotel Shilla (2015) have also established a presence.

Since entering Vietnam, Samsung has played a pivotal role in strengthening bilateral relations. Last year, Vietnam's exports totaled $336.3 billion, of which Samsung's exports accounted for $65.4 billion. Samsung represents about 20% of Vietnam's total exports. Since 2012, when Chairman Lee visited Vietnam with the late Chairman Lee Kun-hee to inspect smartphone production sites, he has maintained steady exchanges with key Vietnamese figures and overseen Samsung's business in Vietnam. Industry insiders evaluate Chairman Lee and Samsung as 'private diplomats' contributing to the enhancement of friendly relations between Korea and Vietnam.

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