Samsung looks to strengthen lineup of Vietnamese suppliers

This is the first time Samsung has participated in an exhibit except for the Supporting Industry Exhibition which it co-hosted with the Ministry of Industry and Trade in June 2016 in Hanoi for the third consecutive years since 2014.

Taking up an area of more than 200 square metres, the largest of the 250 booths at the exhibition, Samsung’s showcase is divided into three main stages: one to display parts suppliers, with an appearance from eight first-grade suppliers, an area introducing three of Samsung’s best suppliers, and an area displaying SEHC’s notable products, like TVs, vacuum cleaners, washing machines and refrigerators.

Samsung invited 200 Vietnamese businesses to the Expo and held talks with roughly 70 wishing to join Samsung’s supply chain. These participaants primarily produce electronics which meet Samsung’s demands for its SEHC factory. This was a chance for businesses to share their needs and seek consultation.

Samsung Vietnam also partnered with Ho Chi Minh City’s Department of Industry and Trade as well as the Centre of Supporting Industry Development to organise Supporting Industry Development Forum, which gave businesses information on how to join Samsung’s supply chain, while finding ways to enhance competitiveness in the field of parts production and Vietnam’s hi-tech industry.

The main topic of discussion was the formulation of a strategic supporting industry development policy for Vietnam which could provide a solution for domestic businesses to expand technical workforce and quality control. In the forum, Vietnamese businesses listened to and discussed Samsung’s policies in selecting suppliers.

Samsung’s representatives shared their experiences in assisting other businesses to join the company’s supply chain. In addition, they worked out concrete plans implementable in the foreseeable future to improving other Vietnamese industries’ competitiveness in producing parts to service Vietnam’s high-tech industry.

The last but most significant activity was Samsung’s invitation of 11 suppliers to visit its consumer electronics complex in Ho Chi Minh City (SEHC). The main activity of this visit was the exchange of experience in production management and product quality between Samsung and its suppliers. This was a chance for Vietnamese enterprises to improve themselves in the process of meeting the standards of the global supply chain.

With these activities, Samsung Vietnam hopes to contribute to the development of the country’s supporting industries, especially in the south, where the electronics industry is showing signs of strong growth.

Recently, with the Raising Competitiveness for Supporting Industries project, which Samsung has been carrying out since September 2015, nine Vietnamese companies have received Samsung’s assistance for three months to improving their production processes as well as bring their standards level with the demands of Samsung’s factories in Vietnam.

“With hopes of long-term sustainable growth in Vietnam, Samsung always cooperates with the Vietnamese government in developing local supporting industries to ensure global competitiveness through practical activities,” said Lee Sangsu, president of SEHC. “We hope to continue creating more opportunities for businesses joining Samsung’s supply chain, ultimately helping us raise our global competitiveness as well as contributing to our long-term development in Vietnam.”

The number of Vietnamese businesses joining Samsung’s supply chain has tripled since 2015. Similarly, Samsung went from having four Tier 1 Vietnamese vendors to 12 by now. There are also 178 Vietnamese enterprises acting as Tier 2 vendors.

Accordingly, there are currently 190 Vietnamese enterprises participating in Samsung’s supply chain. Their distribution is not entirely even, with the majority, six Tier 1 and 155 Tier 2 suppliers, supplying Samsung Electronics Vietnam-Thai Nguyen in northern Vietnam. For SEHC, the corresponding numbers are six Tier 1 and 23 Tier 2 suppliers.