The South Korean’s battle on Vietnamese land More and more South Korean investors have flocked to Vietnam to do business here, thus turning Vietnam into their new battle field.   On the morning of September 10, when President Park Geun-hye was paying a visit to Vietnam, the Hai Phong City People’s Committee granted the investment certificate to the LG Electronics’ factory on making electronics and high technology products. The project has the total investment capital of $1.5 billion, of which $510 million would be poured in the first phase, to be implemented in 2013-2017, and the other $990 million would be injected in the second phase, from October 2017 to September 2023. As such, after the successes with the electronics and consumer refrigeration factories in Hanoi, Hung Yen and Hai Phong, LG has decided to make one more step forward in the Vietnamese market. Meanwhile, another investor, also from South Korea, Samsung, on September 3 sent staff to the central province of Nghe An to learn about the investment policies and the opportunities it can expect in the locality. The group plans to develop the Quynh Lap 2 thermopower plant in the Dong Hoi Industrial Zone. Sources said that Quynh Lap 2 is just one of the five thermopower plant projects Samsung is considering. The other projects include Vung Ang 3 in Ha Tinh, Quang Trach 2 in Quang Binh, Song Hau 3 in Hau Giang and Kien Luong in Kien Giang provinces. Power plants prove to be the “new interest” of the South Korean giant, which is still pursuing the strategy on turning Vietnam into its new electronics production base. In mid-August, Seung Mo Ryu, CEO of Samsung Electro – Mechanics, paid a working visit to Vietnam. The main goal of the visit was putting on the table of the Vietnamese competent agencies the documents of another project. The company plans to develop a project on making microchips and electronics parts for Samsung mobile phones, to be located in the SEVT in Thai Nguyen province. The new project, capitalized at $1.2 billion, as anticipated, has been applauded by the provincial authorities, like the one on making mobile phones kicking off in March 2013. If everything goes smoothly, according to Phan Manh Cuong, Deputy Head of the Thai Nguyen Industrial Zone Board of Management, Samsung would get what it wants – the investment certificate – in September. With the $1.2 billion project, Samsung would have $3.2 billion in Thai Nguyen province, $2.5 billion in Bac Ninh. Meanwhile, Samsung Vina in HCM City is considering a new business plan after turning into a 100 percent foreign invested TV maker instead of a joint venture. Both the South Korean leading electronics groups have poured billions of dollars into their projects in Vietnam. Analysts have commented that the battle between the two big guys has started. Though LG brand is thought to be weaker than Samsung, LG does not hesitate to “declare war” with the “fellow countryman.” The direct confrontation of the two big guys would take place in the market of consumer electronics – the products they both target. It’s still unclear if he LG’s new factory worth $1.5 billion will make mobile phones. If the answer is “yes,” they would also compete to scramble for more mobile phone buyers. Source: Doanh Nhan