HOMEPAGE
Hot Properties
ADB: Vietnam’s 2009 GDP growth to be highest in South East Asia
MGM Grand Ho Tram: Vietnam’s First ‘Las Vegas Style’ Integrated Resort
Nha Trang’s Twin Towers project licenced
Foreign investors still have good opportunities in Vietnam
Sierra Wireless gets a foot in Vietnam’s ICT market
INDOCHINA INTERNATIONAL CONSULTING CO., LTD
HO Add: 62L/36 Nguyên Hồng, Ward 11, Bình Thạnh District, HCMC - Vietnam
Biz Office Add: #48 Road No 11, Quarter 6, Hiệp Binh Chánh Ward, Thủ Đức, HCMC - Vietnam
®Source: http://viipip.com should be clearly quoted for any use of information extracted from our website.
Publication permit No: 60/GP-TTĐT , April 05, 2010.
VFF Chair explains why Samsung has invested in Vietnam
Date: 11/9/2016 4:26:22 PM
Large multinational manufacturing conglomerates have capital and technologies, but lack sufficient number of good workers in their home countries. For that reason, as well as lower labor costs, they have invested in the country, Vietnam Fatherland Front (VFF) Chair Nguyen Thien Nhan told the National Assembly on November 3.
During the 10-minute presentation about economic restructuring, he emphasized that the quality of the human resources is one of the most important factors of the restructure.
“In 1996, we had 35 million workers. In 2016, we have 54 million. This means that the number of workers has increased by 19 million after 20 years,” Nhan said.
“It is expected that we will have 68 million workers by 2035. This is a very valuable asset and a big advantage for Vietnam,” he said.
According to Nhan, many developed countries now suffer from a lack of workers due to low birth rates. In developed countries such as South Korea, Singapore and Japan, the number of births per family is 1.25, 1.26 and 1.4, respectively.
Using the labor force effectively and developing human resources is always the top priority task for economic restructuring
“As such, we will still have an advantage in the labor force for 30 more years,” Nhan said, adding that Vietnamese workers are industrious, creative and have rapidly improving skills.
Moreover, the labor cost in Vietnam is lower than many other regional countries.
Citing statistics, Nhan said that a manufacturing worker in Japan is paid 29 times more than a Vietnamese for one working hour, while a Singaporean in the field is paid 20 times higher, a South Korean 17 times and a worker in Taiwan eight times.
“Samsung has high technology and abundant capital. It only lacks workers. And that is why it invests in Vietnam,” Nhan said.
In the last 20 years of investment in Vietnam, Samsung Electronics, together with satellite companies, have invested nearly $10 billion to build large-scale production complexes in Bac Ninh, Thai Nguyen and HCM City.
According to the Ministry of Planning and Investment, Samsung’s total investment capital in Vietnam may reach $20 billion by 2017.
Making big investments, the electronics conglomerate can make big profits. Samsung Electronics Vietnam (SEV) and Samsung Electronics Vietnam Thai Nguyen (SEVT) alone had turnover of $33.4 billion in 2015 and $3.1 billion in post tax profit in 2015.
The profit was equal to the total profit earned by Vietnam’s two largest conglomerates – Viettel and PVN.
Samsung could gain success partially because it could save big money on labor costs.
“Therefore, using the labor force effectively and developing human resources is always the top priority task for economic restructuring,” Nhan said.
(Source:Vietnamnet news)
Other news- Vietnam will become a destination for Chinese investors in the future (11/6/2023 1:03:19 PM)
- Thua Thien - Hue: Calling for investment (11/6/2023 1:00:42 PM)
- Hai Phong Planning to establish a series of industrial parks and economic zones (11/6/2023 12:58:13 PM)
- The Fastest Growing Economies In 2024 (11/6/2023 12:56:34 PM)
- Hai Phong reached the target of attracting FDI capital (10/17/2023 5:18:21 PM)
- Long An has 1,215 FDI projects with capital of 10,519 million USD (10/17/2023 8:40:41 AM)
- What do FDI enterprises recommend to the Vietnamese Government? (10/17/2023 8:38:33 AM)
- Vietnams 3 commitments to foreign businesses and investors (10/17/2023 8:35:45 AM)
- Up to now (2023), how much money have Asian tigers invested in Vietnam? (10/17/2023 8:31:59 AM)
- Another semiconductor manufacturer expands in Vietnam (10/17/2023 8:30:44 AM)
- Billions of dollars poured into Vietnamese semiconductor projects (10/17/2023 8:26:09 AM)
- Revealing the reason why Central region continuously invested by giants Foxconn, Goertek... (10/17/2023 8:24:49 AM)
- VIFTA: Vietnam-Israel Boulevard opened (8/28/2023 9:29:44 AM)
- Wistron announced to pour another 24.5 million USD into Vietnam to build a new factory. (8/28/2023 9:28:33 AM)
- Formulate policies to develop the logistics industry (8/28/2023 8:50:54 AM)
NEWS CATALOGUE
- Vietnam will become a destination for Chinese investors in the future
- What do FDI enterprises recommend to the Vietnamese Government?
- Up to now (2023), how much money have Asian tigers invested in Vietnam?
- Another semiconductor manufacturer expands in Vietnam
- Billions of dollars poured into Vietnamese semiconductor projects
