HCMC pledges support for Samsung expansion

The Party chief of HCMC, Nguyen Thien Nhan, has said the city will create favorable conditions for Samsung to expand its operations in the city, including its investment in a research and development center.

The city is rolling out multiple projects to create a smart urban city and an innovative urban zone encompassing the Saigon Hi-tech Park and 12 universities, and expects to attract investment from South Korean investors such as Samsung, Nhan told Choi Jo Hoo, general director of Samsung Vietnam, at a meeting on March 14 in the city.

Also, Nhan suggested Samsung consider opening the research and development center in the city to take advantage of skilled local human resources. Apart from that, the city will support Samsung in expanding its local supply chain, the local media reported.

At the meeting, the party chief hailed Samsung’s contribution to the local economy, especially in terms of export turnover, as well as its efforts to help improve the capacity of local businesses and train high-quality manpower for the city in particular and Vietnam in general.

Samsung was asked to continue increasing the localization rate of its products by bolstering the purchase of locally made input materials and to continue teaming up with the city in training human resources and helping local firms develop the supporting industries.

In response, Choi expressed his thanks to Nhan and the city for having created favorable conditions for Samsung Vietnam over the years and voiced his wish to continue receiving support from the city’s leaders and departments, so that the company can pursue greater achievements in the coming period.

Sharing Samsung Vietnam’s business performance during the past year, the company leader stated that Samsung’s factories across the country had generated US$60 billion in export turnover for Samsung Vietnam, making up a quarter of Vietnam's total export revenue last year. Samsung’s HCMC-based factory alone contributed US$3 billion, and the figure is expected to hit US$3.3 billion in 2019.

Among the 630 local firms that are tier-1 and tier-2 suppliers of Samsung Vietnam as of 2018, up to 151 are in HCMC, and the figure is expected to rise to 172 in 2020, he said.

Samsung and the Vietnamese Ministry of Industry and Trade have jointly launched a program to help improve the capacity of local firms, with a focus on eight units in the city. The program this year will train 120 consultants for Vietnam, with 60 of them based in HCMC.

saigontimes

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