Samsung begins building a $220M R&D center in Vietnam

Samsung Electronics has begun making a $220 million research and development center in Vietnam, the local unit of South Korean tech giant stated on Monday.

Center in Hanoi

However, a ground-breaking ceremony, which was scheduled for this past Saturday, was canceled because of the new coronavirus outbreak that resulted in travel restrictions on South Koreans, Hong Sun, who is the vice-chairman of Korea Chamber of Commerce in Vietnam, explained to Reuters.

The cancellation was confirmed by a Samsung Electronics spokeswoman confirmed, however, it did not offer any further details.

Construction of the center in Hanoi is going to be completed by the end of 2022, Samsung Vietnam claimed in a statement, adding to the information Samsung said that the center is going to employ between 2,200 and 3,000 people.

Result of Coronavirus

Samsung is the only largest foreign investor in Vietnam, with investments compiling up to $17 billion, it said.

As planned, the center is going to be the largest of its kind in Southeast Asia and will amplify the research capability of the company in areas such as the internet of things, artificial intelligence, big data, and 5G, it said.

Earlier on Monday, the Vietnamese government declared that the initiation of the building of the R&D center.

Exports of smartphones and spare parts from Vietnam, most of which was produced by Samsung Electronics, increased by 4.4% last year to $51.38 billion, according to customs data of the government.

On Friday, Vietnam explained it is going to suspend visa-free travel for South Koreans commencing on Saturday, Feb. 29, amid concerns regarding the spread of coronavirus.

Last week, Vietnam imposed a ban on tourists from areas of South Korea which are hit by Coronavirus. South Korea accounted for about a quarter of Vietnam’s 18 million tourists last year, the second-biggest group after Chinese visitors.

Hello, I’m Anna Yeo. If you like my news coverage, please drop a good word in my inbox. I’m journalist by profession and have been part of many major reporting across the globe. I like to write crisp and factual news. I have completed my masters degree in journalism. Feel free to contact me at [email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *