Samsung Vietnam commits to supporting local suppliers

Samsung Vietnam signing the MoU with the MoIT and Bac Ninh to improve the capacity of local suppliers

On September 21, Samsung Electronics Vietnam, the MoIT, and Bac Ninh People’s Committee signed an MoU to support local supporting enterprises.

Speaking at the signing ceremony, Deputy Prime Minister Trinh Dinh Dung said that the signing marks closer cooperation among the three sides of government, localities, and enterprises in helping local supporting enterprises to join global value chains.

“Samsung contributed to the amicable cooperation between the two countries while simultaneously promoting the activities of local enterprises,” Dung said.

The deputy prime minister also highlighted the weaknesses of Vietnam’s supporting industries and said that the cooperation will help to deal with these while at the same time providing a model for other groups to follow.

Deputy Prime Minister Trinh Dinh Dung spoke at the ceremony

Previously on August 6, the government issued Resolution No.115/NQ-CP setting out goals and measures to boost the development of supporting industries through 2030. Accordingly, the government expects the auxiliary industry to meet 45 per cent of domestic demand and account for 11 per cent of the country’s industrial production value by 2025, and these figures will increase to 70 and 14 per cent by 2030.

In 2018-2020, the MoIT co-operated with Samsung Vietnam to implement a project to provide consultancy and improve the manufacturing quality of local supporting businesses with the participation of 140 companies across the country (62 enterprises in 2019 and 78 enterprises in 2020).

According to Deputy Minister of Industry and Trade Do Thang Hai, the project has acquired numerous positive results, however, due to the lack of human resources, the project has yet to spread to the larger community of 1,800 supporting enterprises.

Hai added that after Hai Duong, Bac Ninh is the second locality that is proactive in co-operating with Samsung Vietnam and the MoIT in implementing supporting activities to improve supporting enterprises competitive capacity and ability to approach global manufacturing chains.

In order to effectively implement the cooperation programme, Deputy Prime Minister Dung assigned the MoiT to complete policies for the supporting industry to deal with enterprises' difficulties related to capital, workforce, and establishing linkages and value chains in this sector.