Wed. Feb 28th, 2024

VietNamNet Bridge – Samsung has accelerated the implementation of its $2
billion project in Thai Nguyen province amid the genuine enthusiasm of the local
authorities, which have offered the South Korean the highest possible investment
incentives.

 

Vietnam, Samsung, FDI, investment incentives, tax rate

Prime Minister Nguyen Tan Dung (middle) at the ground breaking ceremony of Samsung hi-tech complex in Thai Nguyen

President of Samsung Group Lee Kun Hee, when answering the interview of Korean
Times late last year, still said that the Thai Nguyen project was still on
paper.

However, astonishingly enough, the ground breaking ceremony of the Samsung
hi-tech complex in Yen Binh Industrial Zone in Thai Nguyen province took place
just several months later, on March 25, 2013.

Deputy General Director of Samsung Vina Electronics, one of the key persons
preparing for the Samsung’s projects in both Bac Ninh and Thai Nguyen provinces,
said everything went “astonishingly quickly.”

The project kicked off on March 25 is the factory to make mobile phones and
digital camera which has the expected capacity of 100 million products per annum
and the investment capital of $2 billion.

However, this will be just a part of the hi-tech complex to be set up here.
Sources have said that another project on a factory to make microprocessors and
integrating units, capitalized at $1.2 billion is now under negotiation.

No official statement has been made about the second factory. However, in the
speeches delivered at the ground breaking ceremony on March 25, the figure about
the $3.2 billion worth of investment capital for both the projects was
mentioned.

Highest possible investment incentives offered to Samsung

Opinions from well informed circle said Samsung unexpected accelerated the
project in Thai Nguyen because of the goodwill of the local authorities to the
South Korean investor.

Samsung’s project in Thai Nguyen, like the one in Bac Ninh, has been promised
the highest incentives which the government of Vietnam can offer to foreign
investors.

Especially, the Ministry of Planning and Investment has requested Bac Ninh
provincial authorities to explain why they offered Samsung the incentives which
go beyond the incentive frame stipulated by the laws.

The people’s committees of some provinces have also received the heavy criticism
from the public for offering overly high incentives to investors to scramble for
investment projects. The overly high incentives are believed to break the laws
and spoil the foreign direct investment attraction strategy.

However, Samsung’s investment projects are attractive enough for local
authorities to turn a deaf ear to the criticism and try to attract Samsung at
any cost.

Dao of Samsung Electronics Vietnam, while admitting that the incentives for
Samsung have “hit the ceiling level,” said that the investor deserves the
preferences.

To date, the investor’s project in Bac Ninh has helped attract 80 satellite
companies, which have created 80,000 jobs. And Dao is sure that the project in
Thai Nguyen would help bring more satellite companies and create more jobs. And
more importantly, the Samsung’s project would help develop the domestic
supporting industries.

Thai Nguyen province’s leaders and the developer of the Yen Binh Industrial
Zone, where the Samsung’s factory is located, have expressed their satisfactory
about the success in convincing Samsung to invest in the locality.

Sources said Thai Nguyen has done everything it could to support the investor.
In order to have land for the project, more than 50 households have been asked
to leave immediately. The people now have to live in rental rooms while waiting
for their apartments in resettlement areas.

TBKTVN

By vivian