08:21 | 14/03/2015 Economy
(VEN) - The fact that leading world multinational corporations such as Samsung, Intel and Microsoft have constantly expanded investment in Vietnam in the last few years proves that the Vietnamese business environment and human resources have improved. Vietnam Economic News’ Diem Phuong spoke with Prof. Dr. Nguyen Mai, former Deputy Minister of Planning and Investment and President of the Vietnam Association of Foreign Invested Enterprises (VAFIE) about this issue.
Multinational corporations are pouring in increasing investment capital in Vietnam. What do you think about this?
Vietnam has become an ideal investment destination for multinational corporations. The Samsung Group is a strong evidence of this.
Samsung’s investment capital in Vietnam increased from US$650 million in 2007 to US$2 billion in 2011 and US$11.2 billion in 2014 and is expected to reach US$20 billion in 2017, an increase of 17 times from 2007-2014. The group had 10,000 employees in 2007. This staffing is expected to increase to 100,000 people by the end of 2015. Samsung Vietnam’s export revenue increased from several hundreds million US dollars sometime in the past to US$28 billion in 2014.
Prof. Dr. Nguyen Mai, former Deputy Minister of Planning and Investment and President of the Vietnam Association of Foreign Invested Enterprises (VAFIE) said that the state should pave the way for small to medium-sized enterprises to work with each other, enable them to access technology, and help them train human resources to assist them to make the most of the opportunities presented to participate in global value chains.
Microsoft decided to close all or part of its production plants in Komarom (Hungary), Beijing and Guangdong (China) and Reynosa (Mexico) to transfer the production lines to Nokia Bac Ninh in Vietnam. Therefore Nokia Bac Ninh will become Microsoft’s second largest smart phone production facility in the world.
Intel and LG poured more than US$1 billion in Vietnam. Intel said that 80 percent of all CPU Haswell products - the 4th generation chips will be manufactured in Vietnam.
The above-mentioned shows that Vietnam’s foreign direct investment (FDI) attraction has gone the right way and the country’s FDI promotion policies have proved to be effective.
What do FDI businesses talk about the quality of Vietnamese workforce?
They have often said that the Vietnamese business environment has continued improving and that the quality of the Vietnamese workforce is very good. According to a Samsung leader, the labor productivity in Vietnam-based Samsung facilities is equal to 80 percent of that in the Republic of Korea (RoK)-based Samsung factories. Vietnamese workers are keen to learn how to operate advanced technology. Most of people managing workshops in Bac Ninh are Vietnamese.
Apart from India, Samsung has a big research and development (R&D) center in Vietnam wich employs an estimated 2,200 engineers.
A Samsung Bac Ninh leader said that very few of the firm’s employees had been dismissed and there were very few issues in the workplace. He said he was at the factory at 7am every day, while his job does not begin until 8am; it is important to make workers observe labor and work with a high productivity; good pay and other policies are a solution to do this.
If Vietnamese enterprises have as good a working environment as found in FDI businesses they will reach productivity and labor quality by no means inferior to that in foreign companies.