return icon Vietnamnet.vn

What if Samsung relocates high-end production line to Vietnam?

Samsung Electronics has announced the temporary shutdown of its factory in Gumi, South Korea and has relocated the production line of some high-end smartphone models to Vietnam.

Nguyen Binh Minh, a lecturer of the Trade University, commented that the move is not part of Samsung's long-term development and investment strategy in Vietnam. This is just an action to adjust business plan after six workers were found positive with coronavirus.

 

{keywords}



Strategically, this is a production line with high-end technology that Samsung might not want to take out of South Korea. However, in the face of the high risks caused by the epidemic, temporary factory relocation is mandatory to ensure production activities.

Asked about the benefits for Vietnam can , Minh said Vietnam would only have benefits in supporting activities.

In principle, technology transfer will be carried out only if it is mentioned in the strategy signed with Vietnam. In this case, the production line relocation is just a temporary move, not a long-term strategy.

Samsung Electronics has announced the temporary shutdown of its factory in Gumi, South Korea and has relocated the production line of some high-end smartphone models to Vietnam.

Agreeing with Minh, an analyst said he can see no opportunity for Vietnamese enterprises to squeeze into Samsung’s production line. In fact, this is an advanced production line and the enterprises are unable to provide components to Samsung.

Besides, it is nearly impossible for Vietnam’s enterprises to join the production chain because all the links of the chain have been defined already.

“If Vietnam allows Samsung to relocate its production line to Vietnam, we will get some benefits from providing relevant services which don’t have direct relations to the production activities,” he said.

Minh said Vietnam should consider this an opportunity and create favorable conditions for enterprises to operate in the current context of high risks.

“We need to show foreign investors that the government of Vietnam creates favorable conditions for investors and will not abandon them in any case, ” Minh said.

This will help make investors feel more secure and believe in the policies as well as the low-risk investment environment in Vietnam.

If the epidemic cannot be contained after a short time, Samsung may have to think of organizing long-term production in Vietnam.

“If this happens, Vietnam will have more smartphone products to export to the world,” Minh said, adding that this will benefit both Samsung and Vietnam. The manufacturer will be able to maintain production, while Vietnam’s investment environment will become more prestigious.

Regarding the proposal by Samsung not to isolate 700 South Korean workers who come to Vietnam to serve a research project, Minh said there must not be any exclusion in the context of epidemic escalation.

Thanh Lich 

Samsung engineers to be put under close medical supervision

Samsung engineers to be put under close medical supervision

A plan to closely supervise 700 South Korean engineers sent to work at Samsung Display's factory in Bac Ninh had been set up, according to the director of the provincial health department To Thi Mai Hoa on Sunday.  

Samsung Display asks to not isolate 700 engineers from South Korea

Samsung Display asks to not isolate 700 engineers from South Korea

Samsung's plea to exempt 700 South Korean engineers from the mandatory quarantine would cause numerous hiccups in the containment of the epidemic.

MORE NEWS

Ministry listens to firms' difficulties, pledges to raise support

The Ministry of Planning and Investment will propose policies to remove obstacles for enterprises and enable them to seize opportunities to accelerate production and business, Minister Nguyen Chi Dung said.

Vietnam's e-government procurement system set to launch in August

The e-GP would allow effective and transparent management of the public procurement process.

VIETNAM BUSINESS NEWS JUNE 29

Newly-established businesses in H1 exceed 70,000

Australian Foreign Minister enjoys Pho ga in Hanoi

Australian Foreign Minister Penny Wong enjoys Hanoi's specialty of Pho ga or chicken noodles as she arrived in the city on her first visit to Vietnam.

Vietnamese ceramic artist sets two Guinness World Records

Two Vietnamese ceramic works will be recognised as having set Guinness World Records at a ceremony in Hanoi today (June 30).

VIETNAM NEWS HEADLINES JUNE 29

USAID assists Vietnamese businesses to reduce greenhouse gas emission

Vietnam Airlines plans to restore its entire flight network by the end of 2023

The restoration of international flight routes is an important condition for Vietnam Airlines to reduce losses and become profitable in the near future.

Saigon Zoo elephant dung used to make paper

A Saigon Zoo member of staff and a group of students are transforming elephant dung into paper.

Future of Hanoi’s 120-year-old Long Bien Bridge unclear

Long Bien Bridge, the iconic bridge across Hanoi’s Red River, has degraded, but no major repair plan has been finalized and its future is unclear.

Information & Communications Ministry works to create modern digital infrastructure

The Ministry of Information and Communications will exert efforts to create a modern and safe national digital infrastructure, and a new space for digital economic growth, and developing e-government towards the building of a digital government.

Vietnamese NA Chairman begins official visit to UK

National Assembly (NA) Chairman Vuong Dinh Hue arrived at Heathrow Airport in London on June 28 (local time), beginning his three-day official visit to the UK.

Vietnam to establish industrial environmental index

The Ministry of Planning and Investment (MPI) has called for the implementation of an industrial environmental index in Vietnam, according to Le Thanh Quan, head of MPI's department of economic zone management.

Rising costs cast doubt on wood companies growth prospects

As wood export turnover is rebounding with rising demand in the domestic market, the revenues of wood enterprises are expected to advance.

Vietnam’s GDP expands 7.72% in second quarter of 2022

Vietnam’s Gross Domestic Product (GDP) in the second quarter of this year was estimated to increase 7.72% year-on-year, higher than the growth rates in the same quarters during the 2011-2021 period.

Danish Crown Prince Couple to visit Vietnam in November

Wind energy and energy efficiency will be in focus during the visit, which will take place on November 1-2.
back_to_top