Samsung’s Jay Y. Lee meets Vietnam's PM Phuc to discuss business ties

Samsung Electronics Co. Vice Chairman Jay Y. Lee met with Vietnam’s Prime Minister Nguyen Xuan Phuc on Oct. 20 to discuss ways to strengthen business ties and enhance investments in the country.

The de facto leader of South Korea’s largest conglomerate left for Vietnam late on Oct. 19 accompanied by Roh Tae-moon, head of Samsung's mobile communications business and Lee Dong-hoon, chief executive officer at Samsung Display Co.

“We can assume the intent of Lee’s visit when you look at who accompanied him. It shows that Samsung is determined to strengthen business ties with the Vietnamese government and get a thorough look into Vietnam’s smartphone and display strategy,” said an industry source.

It is understood that the discussions between Lee and Phuc involved Samsung’s business strategy in Vietnam and ways to boost cooperation. Vice Chairman Lee began the conversation congratulating PM Phuc on Vietnam becoming this year's ASEAN chair country alongside the country's impressive handling of COVID-19.

During the discussion, Lee brought up Samsung's mobile research and development center under construction in Hanoi, saying that he aims it to become the hub of Samsung's R&D operations. The center is expected to house around 3,000 researchers and begin operations at the end of 2022.

PM Phuc stressed that the country would be eager to support Samsung's business in Vietnam and asked the company to increase its investments in semiconductor plants. 

Prime Minister Phuc and Lee first met in October 2018 when Lee visited Vietnam to examine Samsung's on-site operations. The following year in 2019, Prime Minister Phuc visited Seoul in November to reciprocate Lee’s trip to the Southeast Asian country the previous year.

During the November meeting, PM Phuc requested vice-chairman Lee to “set up many semiconductor plants in Vietnam,” saying that “Samsung’s success is Vietnam’s success.” He also requested Samsung's help in the country's efforts to grow into the biggest strategic production base in the world.

Samsung operates many production bases in Vietnam. It first entered the market in 1995 when Samsung began manufacturing and selling TVs in Ho Chi Minh City, which since expanded into smartphones, displays, network equipment, batteries and other electronics parts.

Currently Samsung runs four corporate bodies in Vietnam: Samsung Electronics Vietnam (SEV) in Bac Ninh Province; Samsung Electronics Vietnam Thai Ngyuen (SEVT) in Thai Ngyuen province; Samsung Electronics Ho Chi Minh City CE Complex (SEHC) and Samsung Display Vietnam (SDV).

During his stay in Vietnam, Lee is also expected to visit the R&D center in Hanoi, as well as other Samsung plants including smartphone factories. He was scheduled to visit the R&D center for a groundbreaking ceremony in February but canceled due to the coronavirus outbreak.

As part of efforts to facilitate Lee’s trip to Vietnam, the country recently adopted a fast-track entry program for South Korean diplomats and businesspeople, exempting them from mandatory self-isolation against COVID-19. Lee was one of the first businesspeople in Korea to apply for the program last month.
 
Write to Hyung-suk Song at click@hankyung.com
Danbee Lee edited this article.