Nokia launches Vietnam factory

Executive vice president of Nokia Devices & Services Stephen Elop sat down with VIR’s Linh Mai to discuss the new project and what it will bring to the country.

What were the advantages Nokia saw in Vietnam when it chose to invest here?

We have manufacturing facilities in India and China as well. We selected Vietnam as our next investment partner for a number of reasons. First was the strong workforce and the country’s access to international shipping lines. We foresee this facility feeding a rapidly growing market and plan to work closely with the government at both the central and local level to realise our goals.

Will the factory produce smartphones, or more basic models?

I won’t say exactly what will be produced here, but I can tell you the first production line will be low-cost products. We haven’t announced to anyone what we will produce in the future and will continue to keep that a secret for competitive reasons.

The government granted you the highest tax incentives, how will you return the favour?

Our focus is on community. First, and perhaps most important, is creating jobs. We have already employed thousands for this one factory. We will also contribute through tax, while we have been offered a very preferential rate, we will still be paying considerable sums to the state budget. Third is our supply line. Many of our partners and suppliers will be investing near us and with an increasing in raw material imports and exports of finished goods there will be considerable revenue generated for ports and airports. That will fuel infrastructure development.

The three things you mentioned are basic, are there other ways you will be giving back to workers and the local community?

We believe we have the most advanced approach to working with and taking care of employees around. You can see that when you walk through our factory. It is a safe, clean, hospitable environment. We try to focus on the little things that make employees’ lives better. An example is wifi in the canteen so employees can relax on the internet during break times and fitness and sports areas for recreation.

We also provide high-quality training to increase their skills and benefit their careers. Most importantly, we watch our employees closely to ensure they are happy and engaged. We regularly ask them if they are happy and satisfied with their jobs, and management. Most have replied in the affirmative. As this plant is just newly opened, we have not yet delved into CSR, but we recognise the importance of and enjoy working with the community, and in the near future we will have a plan to engage in these activities.

Nokia is selling its devices and services to Microsoft, what do you think about this partnership?

The best partnership is a combination of the strengths of both partners. We are strong in creating and manufacturing excellent devices and Microsoft’s strength is software and financial resources. Together we can achieve greatness.