Party General Secretary Nguyen Phu Trong recently concluded an official four-day visit to the Republic of Korea (RoK) at the invitation of Korean President Park Geun-hye. Samsung Vietnam Director General Shim Won Hwan shared his thoughts and expectations on the visit.

Samsung has had great success doing business in Vietnam. What do you think of the country’s investment and human resource attractiveness?

Shim Won Hwan: Samsung has been highly successful operating in Vietnam, which is attributable to many factors, not the least of which is the close cooperation from the Government and regulatory agencies.

Small and medium sized businesses in the support and hi-tech industries are the key investment opportunity in Vietnam. These entrepreneurial ventures are laying a solid foundation for increasing the price competitiveness of Vietnamese manufacturing products in the global marketplace.

The support industry is the key that unlocks the door to sustainable long-term economic growth for Vietnam and investors.

Human resource development goes hand in hand with the evolution of the support industry. Currently the labour forces are not equipped with the requisite technological skills they need.  

Samsung is not only willing but eager to cooperate with the Government and relevant agencies to provide the hi-tech training needed and improve the labour forces skill set.

Local businesses say they find it difficult to get a contract with Samsung to supply components. How can they become a Samsung partner?

Shim Won Hwan: Samsung’s position is that any local businesses that can supply quality component parts on a timely and economical basis can become a partner.

Vietnamese businesses that want to become a partner of Samsung or a supplier in the manufacturing industry, first of all, need to be patient.  They need take incremental steps and gradually grow their business.

In other words, businesses should start by producing simple components and spare parts that are well within their capacity to produce.  From this starting point they should step by step expand.  As they gain in experience and ability to grasp new technologies they can concurrently expand production.

Along these lines, the Vietnam Government can assist by providing added incentives for domestic firms to get involved in the support industry.

What is your advice to Korean firms planning on investing in Vietnam?

Shim Won Hwan: It’s important that when Korean investors come to Vietnam they should be prepared to train local human resources. Vietnam has a young intelligent hardworking and dedicated labour force, a virtual untapped gold mine.

Samsung Vietnam Director General Shim Won Hwan

Additionally, Vietnamese culture and mindset are similar to the Korean people. This is an advantage as Korean investors don’t need to be concerned with cultural shock when operating in the country.

What do Korean businesses expect from Party General Secretary Nguyen Phu Trong’s visit to the RoK?

Shim Won Hwan: The Korean business community has faith that the high-ranking leaders from two countries will devise measures to improve cooperative relations, making the two countries closer.

They also are confident the leaders will work to clarify and streamline investment procedures, bringing practical benefit to both sides.

Samsung hopes to receive more support from the Vietnam Government and relevant agencies, particularly in regards to infrastructure projects.

Vietnamese sanctions are principally imposed on normal businesses, not global ones like Samsung. We hope that Vietnam should list global criteria in its legal regulations and expand investment opportunities for businesses like Samsung.

VOV/VNN