(VOVworld) - Vietnam has attracted more than 11 billion USD in foreign direct investment so far this year, much of it poured into the processing and manufacturing industries. The Republic of Korea’s Samsung group alone has invested billions of dollars in contracts to make mobile phones and components and has become Vietnam’s biggest investor.

Since beginning production in April, 2009, Samsung Electronics Vietnam has contributed greatly to the growth of Vietnam’s electronics sector. Samsung Corporation has increased its investment from the original 670 million USD to 2.5 billion USD now.

Samsung Electronics’ factory in Bac Ninh, Vietnam.

Last year it exported phones and parts worth almost 24 billion USD, 18% of Vietnam’s total exports. That figure is expected to increase to 30 billion USD this year when Samsung’s Thai Nguyen plant reaches full production.

The visit by General Secretary Trong was marked by a wealth of new co-operative deals (Photo: vir.com.vn)

Recently, in a state visit to South Korea, Party leader Nguyen Phu Trong saw Ho Chi Minh City authorities grant Samsung a license to construct a 1.4 billion USD electronics plant. The Samsung CE Complex in Ho Chi Minh City’s hi-tech park will design and build hi-tech electronics products beginning in 2016.

Other subsidiaries of Samsung Group are researching investment opportunities in Vietnam in the shipbuilding, property, and power sectors. In its development strategy, Samsung wants to make Vietnam a global production base. Ha Chan Ho, the group’s strategy advisor and a former Korean Ambassador to Vietnam, says:

“To date Samsung has invested a total of 5.5 billion USD in Vietnam. The figure will reach 7 billion once its consumer electronics plant in Ho Chi Minh City goes into operation. Other Samsung subsidiaries have also been selecting Vietnam as their investment destination.”

Customers try using a new Samsung smartphone to take a selfie at a Samsung phone launch. Phones and phone parts continued to be the biggest export earner over the past 8 months of this year. (Photo: Hung Le)

Samsung recently increased its investment in processing and manufacturing industries in Vietnam, in part thanks to the Vietnamese government’s policies supporting the IT and auxiliary industries and Vietnam’s abundant skilled work force. Nguyen Noi, Deputy Director of the Foreign Investment Department of the Ministry of Planning and Investment, says:

“Projects by trans-national corporations create a ripple effect. If a Trans-national corporation invests in Vietnam, its subcontractors will also go there. Samsung is a good example. It has attracted about 100 satellite companies to produce accessories. The Ministry of Planning and Investment has set up a team to support Samsung’s projects.”

Samsung Group and other FDI enterprises have helped turn Vietnam into one of the world’s 10 leading producers of electronic equipment in less than a decade. Last year’s production totaled 40 billion USD. A representative of Samsung said the investment trend toward Vietnam, especially in high-tech, will continue because Vietnam will continue to offer favorable conditions for investment - the Trans-Pacific Partnership agreement, other free trade agreements, and the establishment of the ASEAN Economic Community by next year.