Samsung's $220 million R&D center in Hanoi, the giant's largest in Southeast Asia, is expected to make its debut by end-2022 as construction has been 60% complete.
The project is located in the city's Tay Ho Tay urban area, with a construction area of 11,603 square meters and a floor area of 79,511 square meters. Construction kicked off in March 2020.
The facility, with 16 floors and three basements, is the first building built by Samsung Electronics outside of South Korea to support the group's R&D activities. It will be the largest R&D center created in Vietnam by a foreign-invested company.
Samsung has strictly enforced measures to avoid Covid-19 outbreaks on the construction site. A new day there always starts with a temperature check, hand sanitizer, and the dissemination of labor and Covid-19 safety regulations. Workers are also PCR tested periodically.
The group stated that construction always remains on track despite disease conditions. The foundation has, for instance, been completed after seven months. To assure construction quality, more than 200 bored piles are drilled to a depth of 45 meters.
“We are trying our best to complete the project safely by the end of 2022, as committed to the Vietnamese government” said Choi Joo Ho, General Director of Samsung Vietnam, adding that construction has gone over half of the way.
Once completed, the center will employ 3,000 engineers, focusing on R&D products, including technological developments such as artificial intelligence, Internet of Things, Big Data and 5G networks.
"The project aims to follow Samsung's worldwide development strategy, while assisting Vietnam in keeping up with global trends," Choi noted.
In addition to its six factories in Bac Ninh province, Thai Nguyen province (northern Vietnam), and Ho Chi Minh City, the R&D center in Hanoi is a vital piece of the puzzle that makes up Samsung's multi-billion strategic investment in Vietnam.
Samsung Vietnam earned $74.2 billion in revenue and $65.5 billion in export in 2021, up 14% and 16% respectively year-on-year, its data shows. The group's export was equivalent to nearly one fifth of Vietnam’s export turnover. It is the largest exporter in Vietnam.
With an additional $920 million added to the Samsung Electro-Mechanics Vietnam (SEMV) project in Thai Nguyen in February, the heavyweight has channeled a total of $19.2 billion into the Southeast Asia country, 28 times higher than its initial commitment.
Samsung mobile phones made in Vietnam account for 50 per cent of the group’s global output. The giant’s main lines are mobile devices, home electronics, and semiconductor products.