VietNamNet Bridge - Samsung has made a daring step by asking ministries and branches to treat it as a Vietnamese company instead of foreign-invested enterprise. 

 

Is Samsung a Vietnamese enterprise?

The proposal was made by Han Myoungsup on the sidelines of a workshop held recently. He said Samsung Vietnam makes a great contribution to Vietnam’s import/export turnover, creates hundreds of thousands of jobs and distributes products all over the globe labeled as ‘made in Vietnam’.

“During the investment process in Vietnam, Samsung has been employing many Vietnamese workers, while our products are made by their hands and brains. Therefore, I think it is not difficult for Samsung to become a Vietnamese enterprise,” he said.

Director of the Ministry of Industry and Trade’s (MOIT) Domestic Market Department Vo Van Quyen highly appreciates the role of the foreign invested enterprise (FIE) in the national economy. He also recognizes the great contribution by FIEs to the domestic production. 

“Ninety percent of the products available at supermarkets are made in Vietnam. The great success is created by FIEs as well,” Quyen said.

Quyen’s statement has caught public attention because this shows MOIT’s viewpoint about what ‘Vietnamese products’ mean.

Government officials, businesses and consumers continue to argue about the ‘Vietnamese product’ concept.

Some of them believe that ‘Vietnamese products’ are goods made in Vietnamese territories, while others argue that ‘Vietnamese products’ must be products made by Vietnamese.

Nguyen Mai, chair of the Vietnam Foreign Invested Enterprises’ Association (VAFIEs), affirmed that ‘Vietnamese products’ are not only made by 100 percent Vietnamese owned enterprises, but also by the producers organizing production and doing business in Vietnam.

What’s behind the ‘Vietnamese enterprise’ proposal?

The proposal by Samsung, somehow, is still described as ‘strange’.

Le Dang Doanh, a renowned economist, confirmed that in international integration, enterprises operating under different business modes are equal in the national economy. 

However, he noted that it is necessary to find out if Samsung really wants to become a purely Vietnamese enterprise.

“It is necessary to clarify what Samsung wants when striving to become ‘Vietnamese enterprise’. Is this because it wants other investment incentives?” Doanh said.

The economist noted that it is necessary to consider the case thoroughly if Samsung wants to become ‘Vietnamese enterprise’ just to be able to enjoy benefits from the ‘Buy Vietnamese’ program. 

“Labor content and labels will not be enough for Samsung’s products to be considered ‘Vietnamese products’. Other requirements in technology conditions, components and corporate governance will also be necessary,” he noted.

Meanwhile, Pham Chi Lan, also a renowned economist, noted that the “Buy Vietnamese” mostly targets Vietnamese small and medium enterprises; therefore, it would be better not to let big foreign enterprises like Samsung to join.

Tien Phong