The troubles in the form of a trade war with the USA and outbreaks of coronavirus have plagued China for some time, but electronics manufacturers are trying to set up new enterprises outside this country under the influence of purely economic factors. Samsung has long been betting on Vietnam in the production of smartphones, and now the company is concentrating production of displays there.
This year, Samsung Electronics intends to place additional production capacities for the production of displays in the south of Vietnam, curtailing or restricting their production in China. About this with reference to the Vietnamese media reports Reuters. The South Korean giant is the largest foreign investor in the Vietnamese economy, Samsung Electronics has already invested at least $ 17 billion in local enterprises and infrastructure.
The transfer to the south of Vietnam of the main part of the production of Samsung displays would make the country the largest exporter of this type of products of this brand. Samsung officials later denied this information. The company in Vietnam already has six display enterprises, as well as two research centers. Most likely, Samsung’s increased presence in Vietnam will occur without prejudice to Chinese-made displays.
According to research, the Vietnamese open spaces attract foreign investors not only with the low cost of land and labor, but also with a developed system of tax preferences. Affected by the existence of agreements on duty-free trade with many countries in the region. The EU also provides for preferential customs treatment. During self-isolation, the Vietnamese authorities made concessions for Korean engineers, who were supposed to visit local Samsung enterprises – they were allowed not to undergo 14-day quarantine mandatory for foreigners.
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