A model demonstrates a Samsung Electronics’ new smartphone Galaxy S7
during its launching ceremony in Seoul, South Korea. (Photo: Reuters)

HANOI – Prime Minister Nguyen Tan Dung has approved a new research and development centre for Samsung in the capital of Hanoi worth almost $400 million ($US300 million), Viet Nam News reports.

Samsung Electronics Vietnam (SEV)’s centre is expected to become operational in 2019. The 21-story facility will cover three hectares, employ about 6000 people and develop high-tech electrical, electronical and telecommunication products.

Its project will also run rent-free for 50 years.

In recent years, SEV has turned Vietnam into one of its largest productions hubs by investing almost $20 billion ($US15 billion) in two productions facilities in the country’s north, and in Ho Chi Minh city.

Samsung secured the government’s approval late last year to raise its investment in another electronics facility to touch about $2.5 billion ($US2 billion).

The expansion comes amid similar moves by electronics firms operating in Vietnam, which include LG, Microsoft, Intel, Canon, Panasonic and Toshiba, helped by new free trade pacts and cheaper wages than China.

– with other agencies