Samsung Electronics has select Vietnam over the Republic of Korea (RoK) as the location for a new factory to produce mobile phones, according to an article by editorial writer Choi Yong-hae on Donga Ilbo newspaper (East Asia Daily).
The article said that Samsung plans to invest some US$982 million to construct a home appliance factory in HCM City.
The decision is attributed to factors such as a highly educated and younger labour force in Vietnam and less expensive labour costs.
Another important factor is that the Vietnam Government has offered many preferential policies for Samsung Electronics in terms of business environment and tax incentives.
At present, around 24,000 Vietnamese workers, who are considered very skilful in making mobile phones, are working at Samsung Electronics’ factory in the northern Bac Ninh province.