Policy opens door to hi-tech investors

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Vietnam’s relaxed criteria for granting hi-tech certification to enterprises should help foreign investors avoid the tedious "case-by-case" application process that currently prevails. The prime ministerial Decision 19/2015/QD-TTg, issued on June 15, 2015 and taking effect from August 1, will substitute for Clause 18 of the Law on High Technology. Under the decision, businesses seeking recognition as a hi-tech firm will first have to be involved in the production of listed hi-tech products and conform to the government’s energy saving and environmental protection standards. The businesses’ average turnover from hi-tech products must be at least 70 per cent of the total annual net revenue. For small-and medium-sized enterprises (SMEs), they must spend an average of 1 per cent of their total annual net revenue on research and development (R&D) activities in Vietnam. For those with the total equity of over VND100 billion ($4.76 million) and more than 300 labourers, … [Read more...]

Northern Power Corporation reports good growth

The Northern Power Corporation under the Electricity of Vietnam (EVN) group achieved an average annual electricity output rise of 16 percent in the last five years, the highest rate among EVN power distribution companies. Its yearly revenue grew by more than 8.5 trillion VND (391.7 million USD) with an average annual net profit reaching over 300 billion VND (13.8 million USD). In the period, electricity prices increased around 123.4 VND per kWh each year, while the loss rate during transmission and distribution reduced from 8.96 percent in 2010 to 7.4 percent in 2014. The Corporation also launched a number of major projects including the Phu Binh Transformer Station and electricity supply projects for Samsung Vietnam and the Ta Loong industrial park in Lao Cai and Vung Ang industrial park in Ha Tinh. Contributing to advancing local living standards, the EVN chapter has thus far made electricity available for 4.5 million households living in rural areas.-VNA … [Read more...]

Vietnam firm takes on Apple, Samsung with much-hyped phone, calls it ‘world’s best’

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Bkav CEO Nguyen Tu Quang presented Bphone in Hanoi on May 26. Photo: Thanh Luan A Vietnamese company on Tuesday unveiled a locally-made smartphone, claiming that its design, technical specifications and security are "on the same level" as the flagship products of Apple and Samsung. Bphone, the first smartphone of Hanoi-based network security company Bkav, was presented to more than 2,000 audiences at a highly anticipated launch event, which was streamed live on many media outlets. Since it was first displayed at the Consumer Electronics Show in US in January, it has been discussed a lot among local tech fans. The hype was fueled by news reports which quoted Bkav CEO Nguyen Tu Quang as saying, several times, that his phone can easily surpass iPhones and Samsung Galaxy phones. In fact, during the latest event Quang kept repeating the claim. "Today is a historic day for all Vietnamese, as a local product is on par with those from powerful countries," the CEO said. He described … [Read more...]

Samsung begins work on $1.4b complex in City

Samsung Electronics broke ground on its consumer electronics complex at the Sai Gon Hi-tech Park in HCM City's District 9 yesterday. — VNA/VNS Photo Manh Linh

HCM CITY (Biz Hub) — Samsung Electronics broke ground for its consumer electronics complex at the Sai Gon Hi-tech Park in HCM City's District 9 yesterday. In the first stage, the Samsung Consumer Electronics HCM City Complex (SEHC) is scheduled to become operational in the second quarter of next year. It will focus on research and development and manufacture of sophisticated television sets like SUHD and Smart and LED TVs. "The Ministry of Science and Technology highly appreciates Samsung's contributions to the country's socio-economic development," Minister of Science and Technology Nguyen Quan said at the ceremony. Quan also praised the city's efforts in soliciting Samsung's investment, saying authorities had created favourable conditions for Samsung to invest in the project. "The Vietnamese Government expects that with this project, Samsung Group will help Viet Nam develop its supporting industries and promote manufacture of hi-tech products in the electronics and … [Read more...]

NA economic targets did far better than expected

Ten of the 14 economic targets by the National Assembly last year were surpassed. However, there are concerns about the positive results. Thoi Bao Kinh Te (Economic Times) Newspaper talked to Mai Xuan Hung, Deputy Chairman of the NA's Economic Committee. Q: In its session opening on May 20, the NA will review the socio-economic situation for 2014. In fact, the socio-economic situation is better than in the report delivered by the Government in the last NA session last October. Do you agree? A: In the last session, the Government reported the NA's implementation of socio-economic development in 2014. After reviewing it, the NA noticed that many targets did better than revealed in the report. Macro-economic balances were more stable. GDP was estimated to have increased by 5.8 percent. But in fact, the index reached 5.98 percent. This compares with 5.42 percent and 5.25 percent in 2013 and 2012. The index of industrial production rose by 7.6 percent in comparison with 5.9 percent in … [Read more...]

Samsung ramps up Vietnam operations to sharpen competiveness of smartphones

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South Korean electronics conglomerate Samsung has decided to beef up its operations in Vietnam in an effort to increase the competiveness of its smartphones in the global market so that they can keep up with top products from rivals like Apple Inc. Wall Street Journal last Monday reported that Samsung is investing heavily to retool its handset factories in some provinces in the north of Vietnam. Samsung has shipped more than 20,000 metal-milling machines to its Vietnam factories to switch to aluminum-alloy bodies similar to what Apple uses, the Wall Street Journal said. Samsung earlier this year announced an expansion of its smartphone manufacturing in Vietnam with $4 billion in new investment after already spending about $4.5 billion on several facilities near the capital city of Hanoi. Last year, it began to seek permission from Vietnamese authorities for a dedicated terminal for the company’s import and export processes at Hanoi’s Noi Bai International Airport … [Read more...]

Friendship medal granted to RoK businessman

The People’s Committee of the northern province of Bac Ninh on May 15 held a ceremony to present the State President’s Friendship Medal to the former Samsung Vietnam General Director Shim Won Hwan. The Medal demonstrates the Vietnamese State’s recognition of the former Samsung executive’s contribution to the friendship and economic cooperation between Vietnam and the Republic of Korea, said Chairman of the People’s Committee Nguyen Tu Quynh. Quynh also hoped that Shim Won Hwan continues to contribute to the development of the relations between the two countries. The Korean man said he was honoured to receive the Friendship Medal, confirming he would do his best to strengthen the RoK-Vietnam relationship. Samsung first invested in Vietnam in 1995 but made itself known in recent years with its construction of two hi-tech complexes to produce mobile devices and components in Bac Ninh and Thai Nguyen provinces with a combined investment of 7.5 billion … [Read more...]

Korean chaebols promote investment in Vietnam

The 1.5bil LG Factory in Hai Phong.

VietNamNet Bridge - The Korean consortiums, such as LG and Samsung, are stepping up investment in Vietnam and see this as an important market to bring about more job opportunities and boost production. Following Samsung, LG Group has launched a $1.5 billion factory in Trang Due Industrial Park in the northern port city of Haiphong. Along with Thai Nguyen and Bac Ninh, Hai Phong was dubbed by investors as the new "Silicon Valley" of Vietnam. These days, the Facebook page of Trang Due Industrial Park is filled with recruitment information, especially from LG. It is expected that more than 20,000 workers will be recruited by this plant. The race of Samsung - LG In fact, LG seems to be late in comparison with Samsung in Vietnam, where Samsung Vietnam has had three factories with a total investment of more than $7 billion. But as one of the chaebols of South Korea, LG has made strategic attempts that are not inferior to Samsung. Koo Bon-joon, Vice Chair and CEO of LG Group, said the … [Read more...]

Foreign investors leave Vietnam high and dry with megaprojects that never were

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Workers at a Samsung Vietnam factory in Bac Ninh Province, which is one of a few multi-billion dollar projects coming into operation in Vietnam. File photo Just less than a decade ago, local people of Quang Ngai Province had high hopes when hearing the news that a Taiwanese firm would build a large steel plant there and create many jobs. The Tycoons Worldwide Group was licensed to build the factory in 2006. The US$1.04 billion project originally aimed to churn out 5 million tons of steel per year. In 2012, the investor decided to cooperate with Japan's second-biggest steelmaker JFE to develop the plant. This time the ambition was to expand the megaproject, increasing its annual capacity to 7 million tons and the total investment to $4.1 billion. However, JFE has recently decided to pull out of the project due to a prolonged oversupply situation of the alloy in Asia. Without the Japanese partner, the investor said they would have to scale down the project to $2 billion. But … [Read more...]

Samsung Vietnam plans $32 billion export value in 2015

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VietNamNet Bridge – Samsung’s plan for $32 billion in export value was submitted to Prime Minister Nguyen Tan Dung by the Minister of Planning and Investment Bui Quang Vinh on Monday. Vinh said the Ministry of Planning and Investment had examined Samsung Vietnam’s exports in 2014 and confirmed the figure of $26.3 billion. For the 2015 plan, Minister Vinh said that Samsung Vietnam has had two new factories in Bac Ninh and Thai Nguyen, but its turnover has dropped because of Apple’s competition. Currently, it has passed Apple and Huawei (China) thanks to the new product - a steel-covered Galaxy. "Samsung has announced its export plan of $30 billion this year. We have checked the two factories in Thai Nguyen and Bac Ninh and saw that the Thai Nguyen factory can yield at least $16-18 billion and $18 billion for the Bac Ninh factory, so it is almost certain that Samsung Vietnam can reach $32 billion or more," Vinh said. In addition, the Minister said that … [Read more...]

Fatherland Front leader receives Samsung Vietnam directors

A mobile phone production line of Samsung Electronics company in northern Thai Nguyen province (Photo: VNA) Nguyen Thien Nhan, President of the Vietnam Fatherland Front Central Committee, received outgoing Samsung Vietnam General Director Shim Won Hwan and his successor Han Myong-sup on March 11. At the reception, Nhan highlighted Samsung’s significant contributions to Vietnam through its medium- and long-term investments and scientific research studies, particularly the recent research collaboration with three major universities in Hanoi. He asked the company to consider providing additional living space for Vietnamese workers and said the front is willing to support Samsung’s operations in the country. According to the incoming General Director Han Myong-sup, the Samsung Vietnam complex in northern Thai Nguyen province currently employs 42,000 labours. In March 2015, it plans to construct nine additional dormitories to accommodate workers, he said.-VNA … [Read more...]

Vietnam draws attention from FDI firms

Workers at Samsung Viet Nam in the northern province of Bac Ninh's Yen Phong District on an assembly line.

Several foreign direct investment (FDI) enterprises are planning to develop big projects in Viet Nam this year in view of an improved investment environment. Katsuyoshi Soma, general director of Canon Vietnam told Hai quan (Customs) newspaper that the company had achieved significant success in 2014 in Vietnam despite a slow recovery in the world market. This year, the company plans to maintain stable production and focus on renewing quality, technique and automation. It will also actively seek local suppliers in the support industry for boosting localisation and reducing inventory as well as prices. Samsung Vietnam has designed a big plan for investing in the energy, shipbuilding and airport sectors in the country this year with an expected total investment of US$20 billion. In the field of infrastructure, Samsung C&T has signed a memorandum of understanding to develop the Vung Ang 3 Thermopower Plant in the central Ha Tinh Province under a build-operation-transfer (BOT), … [Read more...]

Vietnam seeks qualified workers for manufacturing sector

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VietNamNet Bridge – The growing tendency of multi-nationals to relocate their factories from neighboring countries to Vietnam has led to increased demand for medium- and high-ranking personnel. Manufacturing companies have replaced trade businesses to become the biggest clients of Navigos Search, a human resource service provider, in 2014. The number of orders for medium- and high-ranking personnel placed by manufacturing companies has increased sharply recently. In the fourth quarter of 2014, the orders for workers from the manufacturing sector accounted for 27 percent of the total number of orders, a sharp increase from the 17 percent in the second and third quarters of the same year. In fact, the increase in the demand for qualified workers is expected as many multinationals have decided to set up production bases in Vietnam. After taking over Nokia’s mobile phone manufacturing division, Microsoft plans to relocate factories in China, Mexico and Hungary to … [Read more...]

VCCI Suggest Cooperation with Samsung in Skilled Manpower Training and Supporting Industries Development

Dr. Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), recently received newly-appointed Samsung Vietnam General Director Han Myoung Sup at VCCI headquarters in Hanoi.

At the meeting, Loc appreciated Samsung’s contributions [to Vietnam] and reaffirmed VCCI’s companion and support for Samsung in promoting investment in Vietnam. He also hoped that Samsung will expand research and development (R&D) in Vietnam and cooperate with Vietnamese businesses to enable them to join more deeply into global production chains. He also suggested Samsung coordinate with VCCI to deploy three major strategic programmes. Firstly, Samsung cooperates with VCCI to carry out business executive and high-level human resources training programmes. Secondly, Samsung and VCCI jointly launch a programme on promotion of supporting industries. Thirdly, VCCI and Samsung will work together with Vietnam Television (VTV) to produce a documentary film about Vietnam - Korea friendship history. Thu Ha … [Read more...]

HCM City funds infrastructure for Samsung project

HCMC chairman Le Hoang Quan (R) talks to Han Myoung Sup at a meeting in the city on January 22.

The government of HCMC is spending around VND1 trillion developing infrastructure and building facilities to support the implementation of Samsung’s US$1.4-billion electronics project at the Saigon Hi-Tech Park (SHTP). HCMC chairman Le Hoang Quan unveiled the huge spending at a meeting with Han Myoung Sup, general director of Samsung Vietnam, and some senior representatives of Samsung in Vietnam in the city on January 21. Han has been appointed to head all projects of Samsung in Vietnam, including the Samsung CE Complex (SECC) at SHTP, which was licensed last October. According to Quan, the city government is urgently developing facilities on 70 hectares of land at SHTP planned for SECC, leveling the site and building roads so that Samsung can have cleared land on schedule. The budget for all these works is VND1 trillion, he said. Han said at the meeting that Samsung has implemented many projects in Southeast Asia but the project in HCMC is important. Samsung is trying to … [Read more...]

City funds infrastructure for Samsung project

HCMC chairman Le Hoang Quan (R) talks to Han Myoung Sup at a meeting in the city on January 22 - PHOTO: LE HOANG

Le Hoang HCMC chairman Le Hoang Quan unveiled the huge spending at a meeting with Han Myoung Sup, general director of Samsung Vietnam, and some senior representatives of Samsung in Vietnam in the city on January 21. Han has been appointed to head all projects of Samsung in Vietnam, including the Samsung CE Complex (SECC) at SHTP, which was licensed last October. According to Quan, the city government is urgently developing facilities on 70 hectares of land at SHTP planned for SECC, leveling the site and building roads so that Samsung can have cleared land on schedule. The budget for all these works is VND1 trillion, he said. Han said at the meeting that Samsung has implemented many projects in Southeast Asia but the project in HCMC is important. Samsung is trying to put it into operation around this time next year. The latest smart TVs will be turned out in the first phase of the project before the production of household electronic appliances. Earlier, the authority of … [Read more...]

Ho Chi Minh City welcomes Samsung project with over $46mn in infrastructure upgrades

The southern megacity is expected to spend as much as VND1 trillion ($46.6 million) to develop infrastructure to serve the Samsung project,

Ho Chi Minh City is spending over US$46 million on infrastructure upgrades to speed up the implementation of a multibillion-dollar project by Samsung, the city’s chairman told executives of the South Korean electronics titan on Wednesday. The Saigon Times Online quoted chairman Le Hoang Quan as saying at a meeting with Han Myoung Sup, executive presidents of Samsung Electronics, and other high-ranking officials from the company. Han has just been appointed general director of Samsung Vietnam and assigned to oversee all of Samsung’s investments in the Southeast Asian country, including the $1.4 billion plant at the Saigon Hi-Tech Park, Ho Chi Minh City’s tech hub, according to the newswire. The city money is being spent on site clearance and bridge and road construction so that Samsung can soon begin implementing its project, according to the city’s chairman. Quan added that the megaproject is expected to help boost the city’s socio-economic … [Read more...]

Employment demand for execs jumps

Thai Ngoc Nguyen Thi Van Anh, managing director of Navigos Search, told the Daily on January 12 that the middle-ranking and senior personnel needed by the sector accounted for 17% of the total demand for employees in the third quarter last year but climbed to 27% in the final quarter of last year. Employment needs at consumer goods enterprises rose from 9% in the third quarter to 17% in the fourth quarter and from 3% to 9% at the banking-insurance companies. However, the information technology sector saw a quarter-on-quarter fall from 15% to 13% in demand for senior staff. Last year, Navigos Search was unable to find enough skilled engineers as requested by Microsoft Vietnam and Samsung Vietnam, Anh said. Anh said the highest monthly salary of VND202 million (US$9,463) in the fourth quarter was offered by a company in HCMC for the post of e-commerce director, followed by VND148 million for the head of sales and administrative office in the education sector, and VND110 million … [Read more...]

Samsung asks PM for tax exemption

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Samsung Electronics CE Complex JSC has submitted a proposal to the Prime Minister, relevant ministries and departments, seeking preferential treatment for its Samsung CE Complex project. As Dat Viet news website reports, the South Korean business giant's member company has sought to be exempted from paying taxes on imported construction material. It also requested for tax exemption for imported materials, components in five years since it started manufacturing products or since taxes were erased in Viet Nam following the signing of the ASEAN Trade in Good Agreement (ATIGA). In addition, it has also asked to be given preference during the customs procedure. The Sai Gon Hi-tech Park-based project was granted an investment certificate on October 1, 2014, and has a total area of 70 ha. It will break ground in January 2015 and is expected to become operational during the second quarter of 2016. Samsung CE Complex will manufacture high-technology home appliances, such as TVs, printing … [Read more...]

Samsung and its $20 billion plan in VN

A Samsung factory in Vietnam.

VietNamNet Bridge - Besides electronics, Samsung Group also invests in industry, infrastructure, transportation, shipping, and real estate in Vietnam, reports the Ministry of Planning and Investment. relate news Vietnamese companies want to make parts and accessories for SamsungThe power of SamsungElectronic giants invest billions into VietnamSamsung gets special treatment for its Display project in Bac Ninh According to the Ministry’s report, this year Samsung invested $5.4 billion in electronic projects in Vietnam, including $1 billion in a factory in Yen Phong, Bac Ninh province, manufacturing screens. This factory will be able to produce 50 million products a year, with production value of $6 billion. In HCM City, Samsung has invested $1.4 billion in Samsung CE Complex (SECC) in the HCMC High-tech Park. In Thai Nguyen province, the Korean group is implementing the second phase of the Samsung Thai Nguyen hi-tech complex project with $3 billion. In the field of … [Read more...]