Samsung initiates programme to find Vietnamese suppliers

On May 19, leaders from Samsung and experts arrived to Ngoc Khanh Wire and Cable Company Limited and Goldsun Packaging and Printing Joint Stock Company to assess its production capacity.

The visit took place in the framework of Samsung’s supporting programme. Accordingly, Samsung will send experts to Vietnamese enterprises to work with for three months. These experts will advise and help Vietnamese enterprises to overcome their weaknesses.

The above two are among the nine domestic supporting enterprises receiving Samsung’s support. The seven remaining enterprises include Chien Thang Co., Ltd., APV Plastic Co., Ltd., VietHung Packaging Co., Ltd., Thang Long Packaging Co., Ltd., Ngan Ha Wire and Cable Company Limited, Phuoc Thanh Plastic Co., Ltd., and Minh Dat Co., Ltd.

Chairman of Ngoc Khanh Wire and Cable Company Limited Vu Quang Khanh said that thanks to the support and advice of Samsung’s experts, the company’s capacity increased by 30 per cent. The figure is expected to increase to 50 per cent in the upcoming time. Even though the company is currently only a potential supplier, he is confident to overcome Samsung’s strict requirements.

Regarding Goldsun Packaging and Printing JSC, becoming Samsung’s first-tier supplier significantly increased the company’s revenue. In 2015, the company earned $36 million, equalling 45 per cent Goldsun’s total revenue, thanks to selling supporting products for Samsung.

According to a Samsung representative, it is the first time that the company has sent experts to a country to help local enterprises to enhance their production capacity. It shows Samsung’s commitment in raising the localisation rate as well as Vietnamese enterprises’ presence in Samsung’s supplying chain.

The number of Samsung’s Vietnamese suppliers is continuously increasing, thanks to Samsung’s support and advice, as well as domestic enterprises’ efforts to enhance their capacity and product quality.

As of now, 63 Vietnamese supporting enterprises are suppliers to Samsung, including 11 first-tier and 52 second-tier enterprises.

Debuting in Vietnam in 1996, the Korean giant currently has three major manufacturing complexes in the country, including Samsung Vina Electronics in Ho Chi Minh City and the $2.5 billion Samsung Vietnam Electronics complex in the northern province of Bac Ninh, which became operational in 2009. The remaining one is the $5 billion Samsung Vietnam Electronics Thai Nguyen complex, which went on stream in March 2014.

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