Samsung Investing in a Research and Development Center Building in Vietnam

South Korea based undisputed tech giant Samsung Electronics Co (KRX: 005930) announced it had broken ground of a $220 million building in Vietnam which will be used as a research and development center.

The ground breaking ceremony had been slated for the past weekend however this didn’t happen the event was canceled due to outbreak of deadly coronavirus which is forcing many public interactions to be cancelled.

Samsung’s vice chairman of Korea Chamber of Commerce in Vietnam, Hong Sun, said the event failed to materialize due to travelling restrictions issued over South Koreans.

Last Friday Vietnam suspended visa free travel for South Koreans following concerns on spread of coronavirus since South Korea is among Asian countries affected by this epidemic.

In 2019 Vietnam received 18 million tourists from South Korea accounting for 25% off all the tourist which visited the country last year.

Hong Sun said construction of the building will be complete in the next two years further saying around 2,000 to 3,000 workers will get employment opportunities upon its completion.

“The center as planned would be the largest of its kind in Southeast Asia and will enhance the company’s research capability in such areas as artificial intelligence, internet of things, big data and 5G,” said Hun.

Currently Samsung is the single largest multinational investor in Vietnam having investments in the country running up to $17 billion, added Sun.

On Monday Vietnamese government acknowledged commencement of the research and development center building.