Hanoi R&D Center to Be Completed by End of 2022 as Scheduled Despite COVID-19
The appearance of Lee Jae-yong, Vice Chairman of Samsung Electronics, visiting a smartphone manufacturing plant near Hanoi, Vietnam, last October [Image source=Yonhap News]
[Asia Economy Reporter Jeong Hyunjin] Samsung Electronics has decided to strengthen its research and development (R&D) functions in Vietnam, its largest smartphone production base, and is considering expanding the scope of its investments. The Hanoi R&D Center, which Vice Chairman Lee Jae-yong pledged last year to become an R&D hub, is also proceeding with construction as planned and is expected to be completed by the end of 2022.
According to Vietnamese media Vietnam Finance on the 15th, Choi Ju-ho, Vice President and Head of Samsung Electronics Vietnam Complex, said in a recent interview, "While we have focused on investing in production lines so far, we will expand the scope of investment by establishing an R&D center, strengthen cooperation with Vietnamese companies, and participate in public infrastructure projects."
Samsung Electronics began construction of Southeast Asia's largest R&D center in the THT New City area of Hanoi, Vietnam, in March last year. When Vice Chairman Lee visited Vietnam in October last year, he said, "We will develop this place well to become a hub for Samsung R&D." Just as Samsung Electronics factories in Vietnam did not stop operating despite the COVID-19 pandemic, this center is also expected to be completed as planned in 2022. Accordingly, Choi stated that the research personnel at the currently operating Samsung Vietnam Mobile Research Center (SVMC) will increase from 2,200 to 3,000.
Investment focused on expanding production lines so far will now focus on improving productivity through operational stabilization. As of last year, Samsung Electronics' total investment capital in Vietnam is $17.3 billion. This is 26 times more than the $670 million (approximately 740.4 billion KRW) invested in the Bac Ninh production corporation (SEV) factory in 2008, 12 years ago. Choi said, "There are no new large-scale investment plans in the short term," adding, "We will focus on stabilizing factory operations, improving productivity, and enhancing product quality." He also said, "We invest annually in adding production equipment to six factories and are diversifying products produced in factories, such as 5G communication network equipment and laptops."
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