Nguyen Tan Dung, the Vietnamese Prime Minister, has approved a $300-million project for building and operating a Research and Development (R&D) Center in Hanoi, Vietnam by Samsung Electronics Vietnam (SEV).
The R&D Center will be used for innovating and developing new products related to telecommunications, electronics and digital technology. The facility is being planned as a 21-floor building on a three-hectare land plot in the capital of Vietnam.
SEV has proposed preferential conditions to the Hanoi People Committee for conducting the project in Vietnam including an exemption from land lease payments for 50 years, site clearance costs, import tariffs on equipment of the center, clearing procedure to transfer goods between SEV and the R&D center. The annual personal income tax of its employees in the center is also required to be cut by 50%.
Vietnam’s government has reported that the project has been officially approved to operate for 50 years and the facility will be rent-free during its 50-year operation. Samsung will save an average of $14 million in annual rental payment for land use and has agreed to use this savings as funding for the R&D Center. The government and Samsung are still negotiating on other issues related to the project and Samsung is waiting for approval on its suggested conditions for the project.
The project is expected to help the city attract more FDI capital and create approximately 4,000 jobs in coming years. The boom of investment in both manufacturing and R&D from technological giants Apple and Samsung makes a positive trend for developing the electronics and technology industries in Vietnam.