1.

Current situation

http://cafebiz.vn/samsung-bac-ninh-va-samsung-hcmc-ce-cung-lo-ca-nghin-ty-loi-nhuan-samsung-tai-
viet-nam-xuong-thap-hon-ca-khi-gap-su-co-galaxy-note-7-20190311101456476.chn

2. General reasons why Samsung invested in Vietnam (Production Factors, Market Factors and Gov
Support).

http://tapchicongthuong.vn/bai-viet/samsungs-investments-in-vietnam-reasons-and-consequences-
49598.htm

3. Negative impacts (less benefits than expected, environment issues, worker rights, and social impacts)

http://tapchicongthuong.vn/bai-viet/samsungs-investments-in-vietnam-reasons-and-consequences-
49598.htm

4. Samsung in Bac Ninh

4.1 Entry Mode

To a certain extent, the entry mode into a new market can be regarded as one element of crucial decisions
under the company’s foreign market controls. Henceforth, it is not surprising to see different choices of
entry mode from various MNEs, or even from one company. Samsung Electronics chose two entry modes,
which are joint-venture and 100% foreign-owned mode, to enter the Vietnamese market.

In the period from 1996 to 2008, the first affiliate that Samsung Electronics established in Vietnam was
Samsung Vina Electronics Co., Ltd (SAVINA) – a joint venture with TIE Group Vietnam. Samsung considered
Vietnam as a potential market to grow the company as the AFTA agreement was already passed between
Vietnam and ASEAN and more importantly, Vietnam had a strategic plan and negotiation with WTO.
However, customer’s trust and fierce competition from Japanese brands such as Toshiba and Sony, were
the two main barriers that could undermine the company’s development and operation. For that reason,
a joint venture was a safe decision for Samsung Electronics to enter Vietnam for the first time. As with the
dominance in share capital, Samsung Electronics could decide strategic issues while delegating daily
operation controls to its domestic partner.

In the next period from 2008 to now, as the market provided many favorable business conditions, the
company decided to redirect investment to 100% foreign-owned form. Therefore, in March 2008, the
Vietnamese Government granted an investment license to Samsung Electronics to establish a 100%
foreign-owned enterprise, which was called Samsung Electronics Vietnam with the total initial investment
up to USD 670 million. The first plant was choses in Bac Ninh province with the scale of 100 ha land use,
2,300 employees and the estimated production capacity of 1.5 million phones per month. In the same
period, Samsung Electronics acquired the rest 20% of share of the SAVINA company, making it become
100% foreign-owned enterprise.

4.2 Strategies in Bac Ninh

https://www.academia.edu/28880802/Hanh_trinh_20_nam_d%E1%BA%A5u_%E1%BA%A5n_Samsung_
t%E1%BA%A1i_Vi%E1%BB%87t_Nam
file:///C:/Users/Asus/Downloads/Foreign%20Direct%20Investment%20in%20Vietnam.%20A%20Case%2
0Study%20of%20Unilever_stamped.pdf

https://news.samsung.com/vn/samsung-electronics-viet-nam-10-nam-kien-tam-tao-tam-vuot-ky-tich

https://www.vietnam-briefing.com/news/samsung-build-us1-billion-plant-vietnam.html/

http://cafef.vn/nho-samsung-bac-ninh-xuat-khau-tang-gan-25-ty-usd-20180401133532915.chn

https://vietnamnet.vn/vn/kinh-doanh/dau-tu/bac-ninh-thai-nguyen-doi-doi-tu-hieu-ung-ty-do-samsung-
445545.html

https://www.vir.com.vn/samsung-affirms-25-billion-expansion-in-bac-ninh-47655.html

http://www.antconsult.vn/news/samsung-invests-aggressively-in-bac-ninh-province.html

https://vietnamnews.vn/economy/465241/fdi-giants-a-success-story.html#IDEhzvB8U2hDEhhg.97