Venezuela will set up a joint venture with South Korea's Samsung Electronics to produce telecommunications parts in the South American country, state media quoted industry minister Ricardo Menendez as saying on December 4.

Menendez told the official AVN news agency that the factory would help Venezuela increase its exports to the regional Mercosur trade bloc, which the government of President Hugo Chavez joined earlier this year.

Chavez's socialist administration has nationalised much of Venezuela's economy, but its huge oil reserves, 29 million people and geographic location in the center of the Americas are still a draw for some foreign companies.

Last week, French car-maker Renault said it might set up an assembly plant in the country.

Copyright Reuters, 2012