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According to a new report, Samsung has started building a new $220 million R&D center in Vietnam.

Reuters reports that the Vietnamese government confirmed the start of construction in Hanoi, with the new facility set to be completed by the end of 2022. The region appears to be having a renaissance of late, with other large tech firms including Google outsourcing smartphone production and research within Vietnam — likely to reduce reliance on China.

This is a huge move for Vietnam, as well as Samsung, as the firm is now the single largest foreign investor in the country. Samsung’s investments in Vietnam now total more than $17 billion according to Reuters. The new facility will employ between 2,200 and 3,000 people, although it’s unclear what percentage will be from the local population.

Given the recent fears of the spread of the COVID-19 virus in mainland China, having alternative production and research facilities will no doubt ensure that Samsung can maintain its tight grip atop the global smartphone market. The firm is still the most prominent Android smartphone manufacturer on the planet and will likely be for some time to come.

Samsung already has R&D facilities dotted around the globe, including in Canada, China, South Korea, the US, and the United Kingdom. This center will add to the growing presence of Samsung in Vietnam, and will likely complement the dedicated smartphone R&D center in Hanoi.

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Damien Wilde

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