RoK firms intensify investment in research and development in Vietnam

Vietnam has been evaluated as a country boasting excellent talent with labour costs far cheaper than those in the Republic of Korea (RoK), according to a statistical report published on June 14 on the Korean financial investment industry.
RoK firms intensify investment in research and development in Vietnam
RoK firms intensify investment in research and development in Vietnam. (Photo: VOV)

Enjoying consistent economic growth, the nation continuously produces young and highly educated research and development (R&D) staff, it said.

The Korea Trade and Investment Promotion Agency (KOTRA) recently released a report outlining that the average annual education expenditure per Vietnamese student continues to rise. As of 2020, the average annual cost of education per student stands at US$305, representing an increase of roughly 7% compared to 2018.

Furthermore, the country also ranked second globally in terms of information technology development outsourcing of service providers in 2020.

Moreover, "Vietnam Information Technology Market Report 2021" conducted by local market research company TopDev indicates that the average salary of programmers with less than two years of experience in the nation stands at roughly 430,000 won, equal to approximately VND7,800,000. In addition, the salary for those with more than 10 years of experience is 3.27 million won, nearly VND60 million.

The average salary of a new employee working at an average level IT company in the RoK is about 3.5 million won, equivalent to some VND63 million.

Leading RoK enterprises such as Samsung Electronics, Naver, and Revu Corporation have started or are in the process of operating R&D centres in the nation as they strive to ensure high-quality human resources.

From March, 2020, Samsung Electronics commenced construction on the largest R&D centre in Southeast Asia in Hanoi, with the site expected to be completed before the end of the year.

LG Electronics Company has also opened and is in the process of operating the “LGVS Danang Development Center” in the central city of Da Nang in 2020, with this being the second R&D facility after the Hanoi R&D Center.

Elsewhere, Naver and NCsoft also established R&D organisations in Vietnam. Indeed, last year saw Naver collaborate with Vietnamese information technology research institutes, the University of Posts and Telecommunications, and the Hanoi University of Science and Technology to set up an artificial intelligence (AI) research centre.

Along with this, NCsoft is also operating “NC Vietnam Visual Studio”, an R&D agency specifically for graphics technology based in Ho Chi Minh City.

Revu Corporation has also been operating an R&D centre in Ho Chi Minh City since 2018.

Since first opening, the centre has shown remarkable results by developing and launching new platforms such as “Revu Select” and “Revu Partners”, as well as customising specialised platforms for 4 Southeast Asian countries, including Thailand, Indonesia, the Philippines, Vietnam, and the territory of Taiwan (China).

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(Source: VOV)