AIIB Samsung rising as 'national firm' in Vietnam

Employees and executives of Samsung Electronics pose after painting the wall of a welfare center in Thai Nguyen near Hanoi, Vietnam, in this November 2016 photo. Samsung workers have volunteered in Vietnam since 2013, offering education and building infrastructure such as housing and information technology educational facilities. / Courtesy of Samsung Electronics

By Kang Seung-woo

Samsung Electronics has stood out as a dominant force in Vietnam, becoming the top vendor of mobile phones and TVs since its entry into the Southeast Asian country in 1995.

The tech giant has adopted strategies focusing on regionally customized products and services. It also made massive investments in the country that is emerging as one of its key global manufacturing bases, according to market watchers.

Samsung Electronics Vietnam was established in Ho Chi Minh City in 1995. Since then, it has built three manufacturing plants ― two for mobile phones in Hanoi and one for TVs and home appliances in Ho Chi Minh City. In particular, the latter is the 70-hectare Samsung Consumer Electronics Complex built at the Saigon Hi-Tech Park; the Korean firm invested $560 million to produce high-end smart TVs there.

Customized services

Samsung has appealed to Vietnamese consumers, offering various yet specialized services, including “connected TV” and “triple protection.”

The connected TV enables users to enjoy popular features of Samsung Smart TV without an internet connection. In other words, a TV and a mobile phone are linked through Wi-Fi, so people can view their phone photos and videos on a larger TV screen.

In addition, it can send TV sounds to the mobile phone, so users can listen to them without disturbance from surrounding noise by just connecting earphones to the mobile device.

The triple protection is a function designed to minimize possible damage to TVs by the unstable climate conditions in Southeast Asia, such as electrical surges, lightning and humidity.

Amid the soaring popularity of K-pop in the region, Samsung launched its “TV Plus” last year ― a virtual channel video service in Vietnam and Thailand. The service can be enjoyed by simply linking an eligible Smart TV to the internet through a fixed-line internet or Wi-Fi connection.

The service enables users who have their Samsung Smart TVs linked to the internet to enjoy a wide selection of content for free. Vietnamese users can automatically receive four popular K-pop channels.

To appeal to consumers in Vietnam and other Southeast Asian countries with tropical climates, Samsung has introduced “Twin Cooling Plus” technology in its home appliances.

It features two evaporators that manage fridge and freezer space separately to minimize temperature fluctuations, ensuring the right temperature and humidity levels are maintained to keep food fresher for longer.

Considering the high use of motorbikes in Vietnam, Samsung’s Galaxy J series phones feature the “S bike mode” to encourage responsible riding and ensure a tension-free ride.

The mode, once enabled, automatically replies to calls with pre-recorded messages in 14 languages rather than distracting the rider with notifications.

Corporate responsibility

In addition to its innovations for Vietnamese consumers, Samsung has concentrated its efforts on nurturing talented researchers under the name of the Samsung Talent Program (STP).

Since 2012, the STP has awarded $192,000 (214 million won) in scholarships to 420 students. Samsung plans to increase the scale and value of its scholarship program this year.

Beneficiaries of the program will take courses in Java, Android, Tizen, algorithm application and Korean. They will also participate in an internship program at Samsung’s R&D center in Hanoi.

In 2015, Samsung also opened Samsung Nanum Villages in three underprivileged areas of Vietnam. They aim at addressing the causes of poverty and laying the foundation for economic independence by providing a “comprehensive infrastructure” needed for living, such as schools and medical facilities. Nanum means sharing in Korean.

It also operates Samsung SONO School, designed to help doctors improve skills related to ultrasound diagnosis and obstetrics and gynecology.

Plus, employees of Samsung Electronics in Korea have performed volunteer work in Vietnam since 2013, offering education and building infrastructure such as housing and educational facilities for information technology.

Best employer

On its track record, Samsung is gaining recognition among the Vietnamese people.

In a 2016 survey by Swedish branding research firm Universum, Vietnam’s engineering students picked Samsung as the most attractive employer. The poll interviewed 21,062 from 30 universities.

In addition, Samsung also ranked second in the 2017 list of the top 500 best prosperity companies in Vietnam, announced by the Vietnam Report Joint Stock Company in April.

Samsung was one of only two foreign companies to make it into the top 10 along with Japan’s Honda.