Electronics giant Samsung was recently granted an investment certificate for its new $1 billion screen plant in Bac Ninh. While it brings Samsung’s investment in the country to a whopping $6.85 billion, even more impressive, the new plant will allow the South Korean company to manufacture nearly its entire product line in Vietnam.
In addition to becoming a center for research and development, the new plant will produce and assemble curved and high-definition screens, creating 8,000 jobs for local workers.
With four major factories (2 each in Bac Ninh and Thai Nguyen provinces), Vietnam has becomes complete production base for the Asian and global markets.
The company plans to produce 40% of its smartphones in Vietnam by 2015.
The move also underscores the country’s focus on attracting foreign direct investment (FDI). However, some experts have warned that Vietnam has sacrificed too much to lure foreign companies, offering massive tax breaks that make it difficult for local firms to remain competitive.
