South Korea's Samsung may set up a semiconductor factory in Vietnam, and the two countries are expected to discuss investment matters this week

According to Korean media BusinessKorea, Samsung Electronics is expected to make larger investments in Vietnam, possibly building a semiconductor factory.

According to reports, Vietnamese President Nguyen Xuan Phuc recently visited South Korea. When he held a summit meeting with South Korean President Yoon Seok-yue today, he mentioned the possibility of discussing Samsung Electronics' establishment of a factory in Vietnam. The Vietnamese delegation included a large number of economic representatives, and the two sides conducted in-depth discussions on investment and other matters.

According to reports, senior executives from Samsung, LG, Hyundai Motor and many other South Korean companies may participate in the meeting. As Samsung Electronics is the largest foreign investor in Vietnam, the meeting is expected to discuss expanding investment in Vietnam.

The report pointed out that the Vietnamese side may propose that Li Zairong invest in the construction of a semiconductor factory. In October 2018, November 2019 and October 2020, Vietnam proposed to Lee Jae-yong three times to set up a semiconductor factory in Vietnam. In October 2020, Lee Jae-yong inspected the construction site of the Samsung R&D Center in Vietnam, and disclosed the investment expansion plan in a private meeting with then Prime Minister Nguyen Xuan Phuc.

Vietnam already has experience attracting factories from US semiconductor giant Intel. Intel's total investment in Vietnam alone amounted to US$1.5 billion. Intel has 2,800 employees in Vietnam.

It is reported that Samsung has cut the production of smartphones in Vietnam for the second time this year, which is in stark contrast to the traditional peak sales season before Christmas. Samsung has been producing most of its smartphones in Vietnam in recent years for the North American and European markets.