Vietnam is emerging as a prominent hub for research and development (R&D) for Samsung and LG, going beyond being a global production center for the companies. Samsung has established an R&D center in Hanoi with 2,200 researchers while LG upgraded its Vietnam-based VS R&D center to an official subsidiary and plans to increase the number of development personnel.
Samsung achieved sales of USD 73.7 billion in Vietnam in 2022, with exports totaling USD 65 billion, making Vietnam a crucial production base for its global exports. The company operates multiple subsidiaries in Bac Ninh, Thai Nguyen, Ho Chi Minh City, and Hanoi, producing smartphones, home appliances, 5G communication equipment, displays, batteries, and camera modules. Samsung currently employs over 100,000 people and has made a cumulative investment of USD 20 billion in Vietnam.
Similarly, LG has been manufacturing 15% of its global sets and parts in the Hai Phong cluster which comprises housing production subsidiaries of LG Electronics, LG Display, and LG Innotek. LG’s annual production volume in Vietnam reached USD 12 billion, contributing 3% to Vietnam’s GDP.
Other Korean corporations like Hyundai Motor Group and SK Group are also active in the Vietnamese market, with Hyundai establishing production and sales joint ventures, while SK Group has invested in VinCommerce and Masan Group’s distribution holding company.
The state visit of Korean President Yoon Suk-yeol to Vietnam in June 2023 was accompanied by a large economic delegation. The visit took place amidst the growing trade relationship between Korea and Vietnam, which reached a record high of USD 87.7 billion in 2022.
(Source: Business Korea)