R&D centres – a boost to higher value-added production
Samsung Electronics will soon break ground on a mobile research and development (R&D) centre in downtown Hanoi, the largest project of its kind that the conglomerate has built in Southeast Asia.
Established in the capital in 2012, Samsung’s mobile R&D centre has been in charge of the company’s software market for mobile phones and tablets across Southeast Asia. It accounts for 10% of Samsung’s global revenue in the arena.
Investing US$300 million in the construction of the new R&D centre reflects Samsung’s intention to make Vietnam a new Silicon Valley, rather than a manufacturing destination. The company also plans to expand its R&D workforce from 1,600 to 1,800 engineers. This means Vietnam will be producing more value-added products.
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Samsung is not the only foreign investor eyeing R&D expansion in Vietnam. Apple – Samsung’s major rival in the mobile phones and tablets market – may inject US$1 billion into a data and R&D centre in Hanoi. The facility will serve demand from the entire Asian region. Construction time and location remain unknown.
The trend has begun some years ago, with Hewlett-Packard, Piaggio, Panasonic, Yamaha and General Electric being among big names that have invested in their own R&D establishments in Vietnam.
A huge amount of capital has been poured into the country from overseas for many years, mostly focusing on real estate and light industries such as garment-textiles and footwear. The emergence of R&D projects will speed up the technology transfer process. More Vietnamese will have opportunities to access advanced technology from global conglomerates .
Do Duc Dung, a project manager at Samsung’s R&D centre, said Vietnamese staff are as competent as their foreign peers.
Vo Quang Hue, Vice President of Robert Bosch Vietnam, which is a subsidiary of Robert Bosch Germany and has two software and engineering R&D centres in Dong Nai and Ho Chi Minh City, said Vietnamese engineers have improved rapidly in recent years.
They are qualified to take part in R&D projects from foreign enterprises, he noted.
