Samsung to assist Vietnamese businesses in producing sophisticated electronic parts

According to the roadmap, the consultation programme started in 2015 with focus on industries such as printing, packaging, and plastic moulding. In 2017, Samsung will expand their field of consultation to hi-tech industries such as electric and electronics (PCB, speakers built into TV, wire harness and more) to help Vietnamese enterprises produce sophisticated electronic parts which have added-value and hi-tech content in the global supply chain.

Samsung’s target in 2017 will be to provide consultation for 12 Vietnamese suppliers, which would bring the total number of business consultees to 26 since the year 2015. And Samsung affiliates like Samsung Display Vietnam and Samsung Electro-mechanics Vietnam will join this programme for the first time.

Also in this year, Samsung will launch a pilot model for tier-1 vendors to guide tier-2 vendors, creating a ripple effect in Vietnam’s supporting industry. This turning point demonstrates the Samsung’s commitment in increasing localisation rate, supporting Vietnamese businesses to get further involved in Samsung’s component supply chain and contributing to the development of Vietnam’s supporting industry.

With 12 Vietnamese firms participating in the consultation programme in 2017, Samsung will continue to send South Korean experts experienced in the field of final product technology and production quality control to directly guide them for 12 weeks. The South Korean experts will survey and assess local firms for two weeks and directly consult and work with them in the following 10 weeks in reforming production procedures and complete all standards in the product and parts supply process for Samsung’s factories in Vietnam.

In response to the call of the government of Vietnam, which is raising the localisation rate and the presence of Vietnamese enterprises in Samsung's component supply chain, since 2015, Samsung’s supporting programmes have helped increase the competitiveness of Vietnamese enterprises, bringing positive achievements in improving equipment efficiency as well as reducing inventory days and poor-quality stages. Through the consulting, all suppliers have achieved good results, including average 25 per cent reduction in defect rate and a 30 per cent increase in manufacturing capacity

“During the past two years, Samsung has always endeavoured to support Vietnamese enterprises in increasing their competitiveness in production and product quality. The consultation expansion into hi-tech industry with the aim of assisting local firms in producing sophisticated parts and joining the value chain is a strong affirmation for Samsung's long-term and sustainable commitments in Vietnam,” Han Myoung Sup, president of Samsung Complex Vietnam, said.

This consultation programme is one of the Samsung’s efforts to dramatically increase the number of local firms participating in its supply chain with 201 vendors in total (23 tier-1 vendors and 178 tier-2 vendors). They are participating in supply chain for three Samsung’s plants in Vietnam, namely Samsung Electronics Vietnam (SEV), Samsung Electronics Vietnam Thai Nguyen (SEVT), and SEHC Complex in Ho Chi Minh City.

It is expected that, Samsung’s total number of tier-1 vendors will increase to 29 ones in 2017. Besides, Samsung Vietnam has also recorded the significant breakthrough in raising the localisation rate of products from 35 per cent in 2014 to 57 per cent at present. This year, the turning point in supporting programme for high-tech enterprises will promisingly create more opportunities for Vietnamese suppliers to join Samsung's global value chain as well as help Samsung achieve its goal of increasing localisation rate in 2017.

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