Samsung praises investment environment

16:11 | 24/03/2014 Economy

(VEN) - “The investment environment in Vietnam is very good,” Samsung Vina Electronics Co. Deputy General Director Nguyen Van Dao told Vietnam Economic News’ reporter Nguyen Hoa in a recent interview.

Samsung Vietnam expected to turn over more than US$30 billion from exports this year

With investment of almost US$6 billion, Samsung is one of the largest global groups in Vietnam. What do you think about the investment environment in the country?

According to Samsung, the Vietnamese investment environment is very good at the moment and is likely to see a new wave of foreign direct investment (FDI) in Vietnam.

The wave would be the result of Vietnam’s changing role and position in the international arena. Vietnam is currently a member of the World Trade Organization (WTO), Association of Southeast Asian Nations (ASEAN), Asia-Europe Meeting (ASEM) and Asia-Pacific Economic Cooperation (APEC). It also has diplomatic relations with 180 countries and territories worldwide. Vietnam is negotiating Trans-Pacific Economic Partnership (TPP) and several free trade area (FTA) agreements with the European Union (EU), the Republic of Korea and more, providing favorable conditions for foreign investors in Vietnam.

In the past, most foreign investors in Vietnam targeted the domestic market with 90 million people. However, they currently target export markets, showing that the investment environment in Vietnam has changed in depth, rather than only in width like before. Samsung is no exception investing almost US$6 billion in Vietnam and mostly targeting the export market, which account for 98 percent of its products, and the remaining two percent are sold in the domestic market.

What plans does Samsung have for this year, apart from two mobile phone production projects in Bac Ninh and Thai Nguyen provinces?

Apart from two major projects in Bac Ninh and Thai Nguyen, Samsung has worked with the government, ministries and sectors in Vietnam to expand its investment to other areas such as thermopower, airports, oil refinery and shipbuilding. The group plans to invest in Vung Ang 3 Thermopower Plant in Ha Tinh Province, Long Thanh Airport in Dong Nai Province, shipbuilding, information technology and e-government.

Many foreign investors are worried about the rapid increase in basic salaries in Vietnam. Is it a problem for Samsung?

As for Samsung Vietnam, worker wages are not a very big problem. According to our latest survey, wages for workers for Samsung Vietnam factories are much higher than the Vietnamese government’s basic salaries and the average of many other enterprises. This means that we have not been affected very much and have not worried about the Vietnamese government’s adjustment of worker basic salaries.

Samsung Vietnam’s policy is how to find hardworking and dedicated workers who want to work for the company for a long time. With that in mind, creating a good work environment is one of measures for Samsung to attain its employees.

Samsung Vietnam sold more than US$20 billion worth of goods abroad in 2013. How much does the group expect to earn from exports this year after its project in Thai Nguyen Province is put into action?

I cannot say anything about it at the moment. However, I anticipated that this year Samsung Vietnam would increase its export revenues against last year./.