Commenting about this, Dr. Nguyen Ngoc Anh, Chief Economist of DEPOCEN, a policy research institute, said the government of Vietnam has shown its special interest in cooperating with Samsung by laying a “suitable” carpet to welcome the special investor.
The government of Vietnam believes that Samsung’s investments in Vietnam can bring the special benefits for the economic development.
When the big investors like Samsung make an investment in Vietnam, they would not only bring capital, technologies, management and marketing skills to Vietnam, but also bring the opportunities to Vietnamese enterprises to join their global production chains.
This is of a very important significance nowadays, when “trade in tasks” gets more and more important in the international trade and investment.
Samsung’s investment in Vietnam is a part of the China plus one strategy being followed by the multinational groups which aims to disperse risks and optimize profits.
Samsung’s greatest advantages can be seen in four fields - electronics, shipbuilding, engineering and construction. Especially, it is one of the world’s leading electronics manufacturing groups.
While other economists keep doubtful about the benefits Samsung can bring to Vietnam in the strategic cooperation, Anh believes that Vietnam needs to “bet” on the cooperation with Samsung.
This is for the first time Vietnam receives the world’s gigantic technology groups, powerful and willing to pour huge sums of money into Vietnam, like Samsung, LG or Intel.
The presence of the big economic groups in Vietnam would help the country join the global production chains and develop strong industries of its own. At first, Vietnamese enterprises can only undertake the simple and labor intensive jobs in the production chains, but they later would be able to undertake the jobs which can create higher added values.
These projects, in the eyes of Anh, are far better than the oil refineries or the projects in the polluting industries.
“The opportunities are really great which should not be missed,” Anh commented. “Vietnam has some 10 years to grab the opportunities.”
He went on to say that if Vietnam still remains indecisive, it may see the opportunities go away. “Multinational groups, which fled China, can also run away from Vietnam. Besides Vietnam, they still have other choices including Myanmar, Bangladesh and other ASEAN countries.” Anh said.
Do Thien Anh Tuan, Lecturer of the Fulbright Economics Teaching Program, while agreeing that the cooperation with Samsung would bring great benefits, has warned that big challenges would arise for Vietnam.
Vietnam would have to offer special preferential policies to the big investor in terms of mechanisms, land, capital and credit sources, thus weakening the resources for other preferential policies.
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