Samsung looking to branch out into Vietnam's telecoms industry

South Korean giant Samsung Electronics has expressed interest in investing in Vietnam's telecommunications industry.

The electronics company's president and CEO Shin Yong-Kyun revealed the company's plan at a meeting with Prime Minister Nguyen Xuan Phuc on Friday.

Since entering Vietnam 10 years ago, Samsung's total investment in the country has risen to $17 billion and it now has 29 Vietnamese partner suppliers, according to Shin. The company's factories in Vietnam are also among its largest and most modern.

Samsung will export over $50 billion worth of products from Vietnam in 2017, making up more than 20 percent of the country's exports, and aims to become partners with up to 50 Vietnamese companies in the next three years, Shin said.

President and CEO of Samsung Electronics Shin Yong-Kyun (L) and Prime Minister Nguyen Xuan Phuc. Photo courtesy of Vietnam Government Portal

During their meeting, Prime Minister Phuc said the government will continue to support and create favorable conditions for foreign investors, including Samsung, to do business in Vietnam.

The prime minister expressed his hope that Samsung will expand its investments in Vietnam to cover more fields in addition to the electronics sector. He asked the company to continue its assistance for Vietnam with training and technology transfer so more Vietnamese auxiliary companies will be able to provide materials and components for Samsung's projects.

Stressing high technology as one of Vietnam's priorities, the prime minister said the country's ministries and authorities are always available to work with Samsung should it encounter any problems.

Samsung currently has six factories in Vietnam and employs 136,700 workers. Products from these factories had been exported to 52 countries by the end of 2016.

The company's production of mobile phones and electronic components increased by 45.5 percent in the third quarter of 2017 alone, contributing to overall growth of 16.6 percent in Vietnam's manufacturing industry.

South Korea is Vietnam's biggest foreign investor.

According to the Korea Trade Investment Promotion Agency, South Korean firms invested more than $50 billion in Vietnam between 1988 and 2016, making up more than 30 percent of total foreign investment in the country with over 6,000 projects.