Leading global cordless power equipment and floor care company Techtronic Industries Co., Ltd. (TTI) is actively searching for local suppliers to increase the localisation rate at its Vietnamese manufacturing facilities.
|TTI's first-ever Vietnam Supplier Workshop attracted more than 100 domestic suppliers |
TTI has recently co-organised its first-ever Vietnam Supplier Workshop with Saigon High-tech Park (SHTP) in Ho Chi Minh City. The workshop is expected to advance TTI’s presence among local suppliers and will further develop TTI’s strategic objectives in Vietnam.
Vietnam is important to TTI’s global manufacturing expansion strategy as its global manufacturing footprint provides strategic geographic diversification for the group and brings stronger supply chain capabilities supporting future business growth.
Nate Easter, executive vice president of Global Sourcing & Outdoor Products Operation of TTI, said, “Armed with the tremendous support from SHTP and the local government, we are glad to have chosen SHTP as the location of our new plant in Vietnam. It has favourable access to a vast pool of talent, high-quality suppliers, and a strong commitment from the government and public administration, fully supporting TTI’s current and future development plans at SHTP.”
Under the plan, TTI will begin the construction of the SHTP factory between October and December this year. The project is slated to be completed by the end of 2021. In fact, TTI already has a factory in Binh Duong with localisation rate of 38 per cent. The company expects to increase the rate at this factory to 65 per cent by the end of this year.
Meanwhile, the SHTP factory will cover an area of 13.5 hectares. Once fully operational, the project will employ around 7,000 people including 500 employees for research and development activities.
TTI will provide details of domestic supplier development plan for SHTP and Center of Supporting Industries Development (CSID) with the goal that by 2025 the domestic supply chain will reach over 80 per cent and come from at least 100 domestic enterprises in and outside of SHTP. This will help establish Vetnamese supplier links with TTI.
In addition, TTI will support domestic enterprises to receive appropriate technology transfer from TTI or TTI's partners when these enterprises are selected by TTI to join their supply chain. Meanwhile, Vietinbank and Agribank agree to provide all banking services and financial solutions fulfilling all banking needs of TTI and its business partners and vendors with competitive and resonable price.