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Author Topic: Korea´s parasitic relationship w Vietnam ending: Vingroup fights Samsung  (Read 86 times)

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http://www.koreaherald.com/view.php?ud=20181219000518

in 2018
South Korea's exports to Vietnam rose 1.9 percent on-year to $44.5 billion over the period, while its imports soared 22 percent to $18.1 billion on strong demand for displays and electronics parts produced in Korean factories in Vietnam, the ministry said.

https://www.ft.com/content/d20245de-67ff-11e9-9adc-98bf1d35a056

but Vingroup is hoping to at least kick Samsung out of Vietnam´s domestic market.  Sure, Vietnam will be for the time being a place of manufacturing for S. Korea´s export to the world.  I am sure the Koreans see this coming but have invested so much in Vietnam already.  They can´t pull out now but they have to make the trade more balanced.  Vietnamese people get pennies for the amount of money they generate for the Koreans.  That is not as bad as all the "middle class" Viets buying Korean products that can easily be made in Vietnam like ramen and clothes.




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   https://www.ft.com/content/d20245de-67ff-11e9-9adc-98bf1d35a056

   Vietnam’s richest man, Pham Nhat Vuong, is stepping up his efforts to grab a share of the domestic smartphone market from foreign rivals such as South Korea’s Samsung.

Vingroup, the conglomerate controlled by Mr Vuong, aims produce up to 5m handsets a year at its main production facility by 2021, a group executive told the Financial Times, underlining the company’s ambitions to reshape a smartphone market that it only entered last year.

Katherine Nguyen, who heads the company’s VinSmart unit, said its goal was to have its handset plant in Haiphong, northern Vietnam, operating at full capacity within two years, as a range of upgraded models attract consumers buying phones for the first time.

“The pie is huge, and the consumer desire and need is growing,” Ms Nguyen said in an interview. She said the company was also planning to build a second handset plant west of Hanoi in Hoa Lac, where VinSmart also plans to begin producing “smart” TVs in the third quarter of this year.

Vietnam’s communist government is rewriting regulations in areas such as autos and pharmaceuticals trying to promote local companies such as Vingroup after years in which its economy was dominated by foreign competitors like Samsung, which makes about half of its mobile phones in the country.

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   https://www.ft.com/content/d20245de-67ff-11e9-9adc-98bf1d35a056

   However, analysts warned that the production target was a testing one at a time when global consumers’ enthusiasm for smartphones shows signs of waning, and in a country where Samsung and China’s Oppo control more than half of the market.

“If Vingroup wants to achieve the goal of 5m by 2021, they would have to do two things: build up their brand value, and beat Samsung and Oppo on marketing and branding,” said Rushabh Doshi, research director of Canalys, the mobile technology research group.

Vingroup, which is Vietnam’s largest private company, announced a launch into technology last year, opening an artificial intelligence and big data analysis division and unveiling four phone models under the Vsmart brand.

“The vision for now is not only to create a smartphone,” Ms Nguyen said. “We are looking at the whole ecosystem, to create a seamless, connected life [and] help people to connect with their loved ones, with different things in their lives.”


Vingroup launched its Vsmart phones in 2018 © Reuters
Vingroup would also need to “find a good synergy” with retail companies who play a dominant role in the domestic mobile phone market, Mr Doshi said. Vietnamese consumers bought about 15m phones last year, a number Canalys forecasts will reach nearly 17m in 2021.

Outside Vietnam, Vingroup is selling its Vsmart phones in Spain, where it has a majority stake in BQ, an electronics maker. Alongside plans to sell phones in Russia and Ukraine, the company will soon launch in Myanmar, where Vietnam’s dominant mobile provider Viettel launched the Mytel network last year.

Follow John Reed on Twitter: @JohnReedwrites

A previous version of this story incorrectly referred to Hoa Lac, site of Vingroup’s future mobile phone plant, as a province.



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I predicted this years ago.  As Vietnam and Korea economic interests diverge, those half Korean half Viet mestizos will bear the brunt of collateral damage.

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I predicted this years ago.  As Vietnam and Korea economic interests diverge, those half Korean half Viet mestizos will bear the brunt of collateral damage.
They'll have to pick a side, a hopefully, as the case with Mestizos in the Philippines, they'll choose the land they were born in, Vietnam.

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