Korean electronics industry to lead Vietnamese economy… 160,000 staff hired in Vietnam… More than Korea
Park Jung Il | comja77@ | 2017-12-13 11:11:53
Korean electronics companies such as Samsung and LG are leading the growth of the Vietnamese economy through large-scale investment and recruitment.
Especially, Samsung`s electronics affiliates have grown to become the flagship company leading the local economy, employing more than 160,000 people in Vietnam.
According to the Korea International Trade Association (KITA) and industry on December 12, overseas exports of Vietnam totaled USD 193.8 billion, up 21.1 % from the same period last year. Among them, exports of mobile phones and accessories were USD 41.3 billion, and exports of electronic devices and computers and accessories were USD 23.6 billion, up 30.6% and 38.1%, respectively.
Among them, Samsung Electronics, which produces household appliances and mobile phones in Vietnam, accounted for 22.7% of total exports by exporting $ 44 billion during the same period. The trade association said that Samsung Electronics` investment in Great Vietnam is 17.3 billion dollars, including the investment project of the city of Ho Chi Minh City, northern Vietnam, and the Thai Nguyen investment project.
Also, Samsung Electronics is steadily increasing local recruitment. Electronic affiliates such as Samsung Electronics, Samsung Electro-Mechanics and Samsung SDI already employ 160,000 people in Vietnam, and 18,000 people are included in indirect employment (excluding employees of partner companies).
This is more than the 120,000 employees of Samsung Electronics, Samsung Electro-Mechanics and Samsung SDI. Samsung Electronics recently issued a college graduation bid to select 2,200 people in Vietnam, and it was reported that more than 20,000 local college students supported it.
LG is also aggressively investing in Vietnam and hiring locally. LG Display, which has an OLED (organic light emitting diode) display panel module manufacturing plant in Haiphong, northern Vietnam, has been investing $ 1.5 billion since last year to expand the line. LG Display plans to increase the number of Vietnamese employees to about 7,000, currently 4,000.
Meanwhile, LG Electronics, which operates a TV, mobile phone (Huangyuan), washing machine, vacuum cleaner, air conditioner (Haipong) factory in Vietnam, recently plans to invest $ 1.5 billion in local by 2028. LG Electronics has about 2,000 employees in its Vietnam plant. In addition, LG Chem and LG Innotek have electronic parts manufacturing facilities such as polarizers and camera modules.
LG Electronics, LG Display, LG Chem, LG Innotek and other LG affiliates have about 7,000 Vietnamese employees, relatively fewer than Samsung affiliates.
Korean electronic companies` entry into Vietnam is a result of the combination of production competitiveness, such as labor costs, and support from the Vietnamese government. The Vietnamese government is giving various benefits to foreign companies investing about 330 billion won or more including tax exemption for 4 years. It has also created the Electronic Component Industry Development Act, which provides local manufacturers with up to 75% of technology transfer costs and associated training and training costs, tax and lending benefits. According to the Vietnam Chamber of Commerce and Industry (VCCI), the average annual income of local workers is about KRW 3.84 million.
A business representative said, "Although the corporate environment such as corporation tax and minimum wage increase is getting worse in Korea, emerging countries such as Vietnam are offering active incentive to investment." The government does not merely pressure companies to create jobs and we will do it."
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
Especially, Samsung`s electronics affiliates have grown to become the flagship company leading the local economy, employing more than 160,000 people in Vietnam.
According to the Korea International Trade Association (KITA) and industry on December 12, overseas exports of Vietnam totaled USD 193.8 billion, up 21.1 % from the same period last year. Among them, exports of mobile phones and accessories were USD 41.3 billion, and exports of electronic devices and computers and accessories were USD 23.6 billion, up 30.6% and 38.1%, respectively.
Among them, Samsung Electronics, which produces household appliances and mobile phones in Vietnam, accounted for 22.7% of total exports by exporting $ 44 billion during the same period. The trade association said that Samsung Electronics` investment in Great Vietnam is 17.3 billion dollars, including the investment project of the city of Ho Chi Minh City, northern Vietnam, and the Thai Nguyen investment project.
Also, Samsung Electronics is steadily increasing local recruitment. Electronic affiliates such as Samsung Electronics, Samsung Electro-Mechanics and Samsung SDI already employ 160,000 people in Vietnam, and 18,000 people are included in indirect employment (excluding employees of partner companies).
This is more than the 120,000 employees of Samsung Electronics, Samsung Electro-Mechanics and Samsung SDI. Samsung Electronics recently issued a college graduation bid to select 2,200 people in Vietnam, and it was reported that more than 20,000 local college students supported it.
LG is also aggressively investing in Vietnam and hiring locally. LG Display, which has an OLED (organic light emitting diode) display panel module manufacturing plant in Haiphong, northern Vietnam, has been investing $ 1.5 billion since last year to expand the line. LG Display plans to increase the number of Vietnamese employees to about 7,000, currently 4,000.
Meanwhile, LG Electronics, which operates a TV, mobile phone (Huangyuan), washing machine, vacuum cleaner, air conditioner (Haipong) factory in Vietnam, recently plans to invest $ 1.5 billion in local by 2028. LG Electronics has about 2,000 employees in its Vietnam plant. In addition, LG Chem and LG Innotek have electronic parts manufacturing facilities such as polarizers and camera modules.
LG Electronics, LG Display, LG Chem, LG Innotek and other LG affiliates have about 7,000 Vietnamese employees, relatively fewer than Samsung affiliates.
Korean electronic companies` entry into Vietnam is a result of the combination of production competitiveness, such as labor costs, and support from the Vietnamese government. The Vietnamese government is giving various benefits to foreign companies investing about 330 billion won or more including tax exemption for 4 years. It has also created the Electronic Component Industry Development Act, which provides local manufacturers with up to 75% of technology transfer costs and associated training and training costs, tax and lending benefits. According to the Vietnam Chamber of Commerce and Industry (VCCI), the average annual income of local workers is about KRW 3.84 million.
A business representative said, "Although the corporate environment such as corporation tax and minimum wage increase is getting worse in Korea, emerging countries such as Vietnam are offering active incentive to investment." The government does not merely pressure companies to create jobs and we will do it."
By Park Jung Il comja77@