The R&D center to be built in the capital city Hanoi will cost about $220 million, according to Samsung.
The center is expected to start functioning by 2022 and employ between 2,200 and 3,000 new workers to increase the South Korean technology giant's research efforts in artificial intelligence, internet of things, fifth-generation digital cellular technology, and big data.
Samsung vice-president Lee Jae-yong met Vietnamese prime minister Nguyen Xuan Phuc twice in 2018 and 2019 in Hanoi and Seoul, enabling timely start on the construction of the new center, per the statement.
The Vietnamese government had announced the center earlier in the day, as noted by Reuters.
Why It Matters
With fast-growing economies, a larger number of companies are looking to establish bases in the Southeastern region of Asia, with cooperation from local governments.
Vietnam, one of the fastest-growing economies in the region, has relied on increased electronics exports.
The export of smartphones and spare parts alone increased by 4.4% year-on-year in 2019 to $51.38, as reported by Reuters, with Samsung making a major contribution.
Last month, Samsung said that its manufacturing plants near Hanoi that make the flagship galaxy model remain operational at "full capacity," unimpacted by the novel coronavirus outbreak, the Nikkei Asian Review reported at the time.
Vietnam on Saturday announced that all visitors coming from South Korea would be quarantined for 14 days. The government also temporarily canceled the visa-free entry for South Korean visitors. Both moves are likely to hurt Samsung's business in the country, according to the Nikkei.
Samsung's shares traded 1.48% higher at $46.11 in Seoul at press time on Monday.
Photo Credit: Courtesy of Samsung Newsroom.