A view of Samsung Electronics Device Solutions American Headquarters. (Photo: www.transparenthouse.com)
Samsung Electronics Vietnam (SEV) has demanded a host of incentives to develop a research and development (R&D) center in Hanoi, which could cost an estimated $300 million and be divided in three phases.
SEV plans to build a 21-storey building on a three-hectare land plot and employ 2,000 laborers in 2016 and 4,000 in the upcoming years. With the project, SEV will develop hi-tech electric, electronic and telecommunication products.
To proceed with the project, SEV asks for exemptions of land fees during 50 years, site clearance costs, import tariffs on equipment and devices for the R&D center, and customs procedure clearing. In addition, annual personal income tax of employees in the center will be cut by a half.
According to Viettimes.vn run by the Vietnam Digital Communications Association, the Ministry of Planning and Investment and authorities of Hanoi have majorly agreed to SEV’s demands.
The establishment of the R&D center is an obligation of SEV so that the smartphone producer can enjoy incentives for its complexes in the northern provinces of Bac Ninh and Thai Nguyen, said the ministry in a report submitted to the prime minister.
Hanoi’s government, meanwhile, has decided to use the city’s budget to cover costs for the infrastructure in the three-hectare land plot where center will be built.
Samsung has invested nearly $15 billion in its complexes in Vietnam, turning Vietnam into one of the biggest manufacturing hubs of the South Korean tech giant. Its $2 billion CE complex in Ho Chi Minh City is poised to come into operation this summer.