South Korean electronics brand Samsung is being called upon by the Vietnamese government to invest in developing local talent to head its operations in the country, where the South Korean tech giant is responsible for producing half of its worldwide output of mobile devices. This request comes as Vietnam looks to strengthen its domestic capabilities in technology, skills, and its supplier ecosystem.
In a recent visit to Samsung’s critical production base in Bac Ninh province, Prime Minister Pham Minh Chinh expressed the government’s desire for the corporation to play a crucial role in grooming Vietnamese leaders and executives. According to a statement on the government’s website, this move aims to position Vietnam closer to more developed nations, such as South Korea, in the value chain.
Samsung’s significant presence in Vietnam, accounting for 17.4% of the country’s exports to 128 markets, brings into focus the critical role that the corporation plays in the local economy. The company’s expansion in Vietnam happens as it, along with other foreign investors, pushes for more tax incentives for manufacturing operations, viewing Vietnam as an alternative to China for production.
Despite the global economic downturn affecting both Samsung and Vietnam, the electronics giant continues its operations, even starting chip substrate production this year in Vietnam. However, the economic challenges are not lost on the Prime Minister, who acknowledged the reduced world economic growth and increased financial risks during his tour of the Samsung factory.
In addition to grooming local leaders, the government has urged Samsung to invest in female employees, provide well for the workers’ material and spiritual needs, and assist Vietnam in transitioning towards a greener, socialist-oriented market economy.
Choi Joo Ho, Samsung’s Director in Vietnam, reaffirmed the company’s commitment to long-term investment in the country, although the details of their plans remain undisclosed.
According to Nikkei Asia, this comes amid concerns from the Korean Chamber of Commerce and Industry over a proposal to discard some tax benefits currently used by businesses importing materials for manufacturing exports. Choi Bundo, chamber chair for south and central Vietnam, expressed that the proposal made Vietnam less appealing for foreign direct investment.
While the Vietnamese government pushes for Samsung to increase its local hiring for executive positions, other tech firms in the country are already tapping into the value of local talent. Last year saw a surge in job postings for Chinese-speaking roles, spanning from engineers to sales positions, as firms relocating from China grapple with the language barrier.
As we watch these developments, it’s clear that companies operating in Vietnam, like Samsung, are not just significant economic players, but they also hold the potential to uplift local talent and contribute to the country’s societal progress.