$46.5 million for land clearance, roads and bridges to ensure project stays on schedule.
The Ho Chi Minh City People's Committee has spent about VND1 trillion ($46.5 million) on developing infrastructure to help Samsung implement its $1.4 billion project producing electronic goods at the Saigon Hi-Tech Park (SHTP).
The figure was announced at a meeting hosted by Mr. Le Hoang Quan, Chairman of the Ho Chi Minh City People's Committee, and Mr. Han Myoung Sup, Regional General Director of Samsung Vietnam, and several other senior representatives of Samsung Vietnam, on January 21. Mr. Han is in charge of all Samsung's projects in Vietnam, including the Samsung CE Complex (SECC) at SHTP, which was issued an investment license in October 2014
According to the city's chairman, in order to provide 70 hectares of land at SHTP for the SECC project he has guided departments to quickly implement a series of infrastructure projects to hand over to Samsung for it to implement its project on schedule. The VND1 trillion ($46.5 million) was spent on land clearance and road and bridge building. Mr. Han said at the meeting that although Samsung has invested in many production projects in this field in Southeast Asia, the Ho Chi Minh City project is its biggest. The new factory is expected to produce the latest smart series of TVs in the first phase and then continue producing other high-end household appliances.
According to the SHTP management board, apart from smart TVs the Samsung project will also produce high-tech air-conditioners, refrigerators and washing machines, which are the group's electronic household appliances imported in significant numbers to Vietnam. Moreover, Samsung will set up a Center for Research and Development (R&D) to research and implement programs and application software for the project's electronic lines. Once coming into operation the project will employ about 6,000 workers. Mr. Han said that, like other localities and countries where Samsung has projects, the group will invest in social infrastructure for their workers. Operations are scheduled to begin in the second quarter of 2016, but Mr. Quan said at the meeting that Samsung will introduce its first curved-screen TV produced at the factory on September 2 this year, to mark the 70th anniversary of Vietnam's independence. The project also has the largest registered capital at SHTP, exceeding Intel's chip assembly and testing factory project licensed in 2006, which has registered capital of $1 billion. The Samsung project is expected to contribute to bolstering Ho Chi Minh City's export turnover, increase domestic production value in the city's high-tech product export structure, and improve the skills of technicians and high-tech R&D human resources in the city.
Samsung has also invested in two complexes costing billions of dollars to produce mobile phones and electronic products in northern Bac Ninh and Thai Nguyen provinces, employing nearly 60,000 workers and earning tens of billions of dollars in export turnover annually. About 35 per cent of Samsung's mobile phone volume supplied to the global market is assembled and produced at its factories in Vietnam, and this figure is expected to increase by about 50 per cent in the future. Together with the Bac Ninh SEV and Samsung Hi-tech Thai Nguyen SEVT Complexes, the SECC project in Ho Chi Minh City will continue to establish Vietnam as a strategic link in Samsung's global supply chain.
- Ho Chi Minh City