Samsung, the largest foreign direct investor in Vietnam, plans to increase its investment in the country by $1 billion every year, according to a statement from the Vietnamese government.

The announcement was made during a meeting between Prime Minister Pham Minh Chinh and Park Hark Kyu, Samsung's Chief Financial Officer, on May 9.

Samsung's Growing Footprint in Vietnam

Samsung's investment in Vietnam currently stands at a staggering $22.4 billion, spread across major projects in Bac Ninh, Thai Nguyen, and Ho Chi Minh City.

The company's revenue and exports from Vietnam reached $65 billion and $55.7 billion respectively in 2023. Vietnam accounts for over half of Samsung's global mobile phone production.

The South Korean conglomerate has been actively working to integrate Vietnamese businesses into its supply chain.

Since 2014, the number of tier 1 and tier 2 Vietnamese suppliers has increased twelvefold, reaching 309. Samsung plans to further expand this network and strengthen cooperation in human resource development.

Government Support and Shared Vision

Prime Minister Chinh reiterated the Vietnamese government's commitment to improving the investment environment, streamlining administrative procedures, and fostering a "harmonious benefits, shared risks" approach.

He expressed optimism about Samsung's expanded investment and urged the company to continue supporting Vietnamese businesses in joining its supply chain, promoting cooperation in digital technology, and investing in research and development.

Park Hark Kyu, Samsung's CFO, highlighted Vietnam's improving business environment and the government's proactive support as key factors behind the company's decision to increase investment.

He emphasized Samsung's long-term vision for Vietnam as a strategic manufacturing base, particularly in light of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP).

Samsung's increased investment is expected to boost Vietnam's economy, create more jobs, and enhance the country's position in the global technology supply chain.

The company's commitment to Vietnam underscores the Southeast Asian nation's growing importance as a manufacturing hub and a key player in the global technology landscape.