New Delhi, Nov 5:

Expanding its international operations, private carrier Jet Airways today included Ho Chi Minh City in its network with the launch of a daily flight to the Vietnamese commercial capital via Bangkok from here.

Ho Chi Minh City will be our 22nd international destination in our network and this flight, connecting Delhi and Mumbai via Bangkok to the Vietnamese city will not only provide a seamless connectivity to business travellers but also to the religious travellers, said Raj Shivkumar, Chief Commercial officer, Jet Airways.

He said Vietnam is turning out to be a preferred destination for holiday travellers and also Indian business were increasing their presence in that country, and a flight via Bangkok would be an added advantage for the business and tourism travellers, which would have second flight to the Thai city.

This would also given an option to the passengers from Delhi to several destinations of their choice in ASEAN region while they transit over Bangkok, Shivkumar said.

The inaugural flight (9W064), operated on a Boeing 737800 with 168 passengers and crew, and took off from Terminal 3 of the IGI Airport here after a multifaith puja, in which Ambassador of Vietnam to India, Ton Sinh Thanh also participated along with airlines officials.

The flight would take off from IGI Airport at 8.55 AM, and arrive Bangkok at 1430 hours local time. It would depart from Bangkok at 1545 hours and arrive in Ho Chi Minh Citys Tan Son Nhat International Airport at 1715 hours.

On its return leg, flight 9W-063 would take off from Ho Chi Minh City at 1815 hours and arrive in Bangkok at 1945 hours, from where it would depart at 2030 hours for Delhi and arrive here at 2359 hours.

The new service has been introduced following signing of a memorandum of understanding (MoU) in September between Jet Airways and Vietnams flag carrier Vietnam Airlines.

Shivkumar said in the coming days, the airline would connect more Indian cities with international destinations.

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Jet Airways to fly to Ho Chi Minh City

Samsung Electronics Co. (005930) is close to receiving a license to build a second smartphone factory and investing as much as $3 billion north of Hanoi as the company increasingly turns to Vietnam as a manufacturing hub.

The project will be approved as early as tomorrow and would bring Samsungs total investment in Thai Nguyen province to $6.4 billion, Duong Ngoc Long, chairman of the local Peoples Committee, said by phone today. Samsung, maker of the Galaxy line of smartphones, confirmed its in talks with the government, though it said $3 billion represents the maximum investment amount.

Samsung, the worlds largest smartphone maker, is leading a wave of technology companies turning to Vietnams young workforce to assemble their gadgets. The growing difficulties of operating in China, as well as Vietnams low-cost labor and generous tax benefits, are attracting technology companies, said Lam Nguyen, Ho Chi Minh City-based country director at International Data Corp.

They now see a lot of risk in China because they are competing with Chinese vendors, he said by phone. They have become fierce competitors. Vietnam is in a unique position. You have a motivated workforce and in terms of labor costs, they are cheaper than China, cheaper than Thailand.

Samsungs push into Vietnam comes as the company faces the toughest challenge yet to retain its top spot in the smartphone market. Apple Inc. (AAPL)s iPhone 6 models are winning customers in the high-end, large-screen market, while smaller rivals, such as Xiaomi Corp. and Lenovo Group Ltd. (992), are attracting budget buyers in China.

The company is in talks with the government and specifics such as the scale of the investment and timing have yet to be decided, Samsung said in an e-mail.

Samsung, which opened its Thai Nguyen complex in March, will pay no taxes for the first four years and half the full rate the following nine years for the site, Long said in an interview earlier this year.

The new Thai Nguyen facility, which would be in the same complex, will increase Samsungs total investment in Vietnam to $11.2 billion, Dau Tu newspaper, a publication of the Ministry of Planning and Investment, reported Nov. 10.

In September, the Ho Chi Minh City Peoples Council approved incentives for Samsungs $1.4 billion electronics factory, according to Thanh Nien newspaper. In October, the company said it would build a $560 million complex to make televisions and home appliances in Ho Chi Minh City. In July, Samsung Display received approval from the northern province of Bac Ninh to build a $1 billion assembly plant.

Vietnam is benefiting from shifting supply chains as technology companies look for new manufacturing locations. Nokia Oyj (NOK1V), LG Electronics Inc. (066570), Intel Corp. (INTC) and Wintek Corp. (2384), a supplier of displays to Apple Inc., have set up operations in Vietnam. Korean companies in particular are drawn to Vietnam, Nguyen said.

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Samsung to Get License for New Plant in Vietnam Expansion

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