Vietnam ’s supporting industry is expected to develop as a number of the world leading groups are expanding their network of satellite producers in the Southeast Asian nation.

Samsung, the leading high-tech group from the Republic of Korea (RoK) plans to expand a network of suppliers in Vietnam to 192, with half being local companies, to produce and supply parts for production in its new manufacturing complex.

Based on the mobile manufacturing plant in Bac Ninh province, the Samsung Complex will be set up by 2015 with a total investment capital of 1.5 billion USD. Once operational, the complex is expected to manufacture various high-tech products, such as vacuum cleaners, printers and cameras.

Earlier, Samsung set up a network of 42 satellite firms, operating in Hanoi city, Vinh Phuc, Bac Ninh, Bac Giang and Hung Yen provinces.

In addition to Samsung, other foreign high-tech groups like Intel and Compal are considering developing supply networks due to the poor supporting industry in general and the high-tech area in particular in Vietnam.

To operate smoothly in Vietnam , Compal, from Taiwan , has attracted eight satellite firms in Vietnam ’s market and its 500 million USD laptop manufacturing plant is scheduled to start operating in the first quarter of this year.

Steven C. Megli, Vice President of the US ’s Intel Corporation and General Manager of the Technology and Manufacturing Group, said there have been many inquiries and offer sent to Intel from its large-scale accessories companies after it decided to build a factory to manufacture electronic chips in Ho Chi Minh City .

Matthias Duhn, EuroCham’s Executive Director, said that foreign investors are looking at markets that meet their requirements to serve their production and businesses, including developing supporting industry along with a low-cost workforce.

Vietnam may witness a reduction in FDI in the future if the situation is not improved quickly, he stressed.

Nguyen Van Dao, Deputy General Director of Samsung Vina, said the Government needs to introduce mechanisms and incentives for satellite manufacturers. They are the ones who will have a longer term impact on Vietnam ’s economy.

The Ministry of Industry and Trade has submitted to the Government a draft decree on incentives for supporting industry, including those on infrastructure, taxes and human resources training./.