Authorities support Samsung’s $300 million R&D centre proposal
Authorities support Samsung’s $300 million R&D centre proposal
The Ministry of Planning and Investment and other relevant ministries, as well as the authorities of Hanoi have basically agreed to Samsung Electronics Vietnam (SEV)’s asking for incentives for developing its $300 million research and development (R&D) centre in the capital, according to newswire Viettimes.vn
According to the Hanoi People’s Committee, the R&D centre will contribute to the city’s socio-economic development and promote the electronic, telecommunications, and supporting industries. Furthermore, it is expected to help the city attract more FDI capital and create approximately 4,000 jobs.
Samsung Electronics Vietnam Thai Nguyen (SEVT) as well as SEV are two foreign invested projects receiving the best available preferential incentives in Vietnam. However, foreign investors in general and Samsung in particular must meet the criteria imposed on high-tech enterprises by Vietnam’s Law on Investment, in areas such as investment expenditure and human resources for R&D activities. Thus, establishing the R&D centre is a prerequisite to Samsung’s enjoyment of the most preferential incentives, said the ministry in a report submitted to the prime minister.
SEV plans to build a 21-storey building on a three-hectare land plot and employ 2,000 labourers in 2016 and eventually 4,000 in the upcoming years. The total capital volume of $300 million will be disbursed within four years, including $50 million in the 2016-2017 period, $150 million in 2018, and the remaining $100 million in 2019.
SEV has asked a wide range of preferential privileges for its R&D centre. Accordingly, SEV asked for an exemption from land lease fees for 50 years, site clearance costs, import tariffs on the R&D centre’s equipment and devices, and customs procedure clearing to transfer goods between SEV and the R&D centre in Hanoi. Besides, SEV requested that the annual personal income tax of its employees in the centre be cut by half.
Debuting in Vietnam in 1996, the Korean giant currently has major manufacturing complexes in Vietnam, including Samsung Vina Electronics in Ho Chi Minh City and the $2.5 billion Samsung Vietnam Electronics project in the northern province of Bac Ninh which became operational in 2009. The remaining one is the $5 billion Samsung Vietnam Electronics Thai Nguyen complex, which went on stream in March 2014.
Additionally, Samsung has expressed interest in several major projects, including Vung Ang 3 thermal power plant, Long Thanh international airport, and Long Son oil refinery.
