A production line of Viet Hung Plastic Company in the northern province of Hung Yen supplying packaging to Samsung Vietnam (Photo: VNA) Also, Samsung plans to raise the numberof level-1 suppliers in Vietnam to 29 this year, said Han Myoungsup, Presidentof Samsung Complex Vietnam.
Several local companies were able to joinSamsung’s production chain, showing that Vietnam’s support industry couldbe developed if domestic firms know how to take advantage of the opportunitiesprovided by large enterprises.
SamsungVietnam’s management board last week visited and surveyed the two companies, AnLap Plastic Co Ltd in Hanoi’s Long Bien district and Viet Hung Plastic Co Ltdin Hung Yen province. It also worked directly with three other suppliers, includingPTE Company, Minh Nguyen Company and Viet Hung Plastic Co Ltd in HCM City.
Thisfield survey is part of Samsung’s programme to provide experts to help Vietnamesevendors improve their capacity to join Samsung’s supply chain.
“SamsungVietnam has also recorded a significant breakthrough in raising thelocalisation rate of products, from 35 percent in 2014 to 51 percent in 2016.This is a great contribution that helps made-in-Vietnam products become popularworldwide,” Han said.
Samsung’sfive-vendor visit is part of the supporting programme of Samsung’s experts forVietnamese businesses. Accordingly, Samsung’s experienced experts from theRepublic of Korea have directly assisted the five enterprises in the pastthree months to improve their production process to assure they meetSamsung’s criteria. They are also five of 14 Vietnamese vendors who havereceived Samsung’s direct assistance since September 2015.
Thissupporting programme has also confirmed a strong commitment of Samsung, inresponse to a call by the Government of Vietnam, which is increasing thelocalisation rate and the presence of Vietnamese enterprises in Samsung’scomponent supply chain.
“Ido hope that, through Samsung’s supporting programme, Vietnamese enterprisescould gain the knowledge and experience to enhance theircapacities. Samsung believes that if a product can be localised, we willmaximize its localised content," Han added.
Hoang Anh Tuan, President of Viet HungPlastic Company, said their turnover has seen rapid growth since they have beensupplying packaging to Samsung. Last year, their sales to Samsung accounted forhalf of their total 2 trillion VND (88.9 million USD) turnover.
“Ourlargest advantage from Samsung’s supporting programme is the change in mindset.We commit to always learning and changing in order to apply experience fromSamsung in the best way,” Tuan added.
“Being suppliers to Samsung could be a qualitymeasurement to help local firms easily participate into other value chains. Weare also a packaging supplier to LG and Canon,” he noted.
He emphasised that joining the supply chainfor Samsung has been transparent and open to all businesses. Those seek toparticipate in the chain without sufficient capacity would be immediatelyremoved.
Truong Quang Khoi, An Lap’s director, saidthey have opportunities to modernise their company after joining the Samsungproduction chain.
“We have received support from Samsung toupgrade our workshops, equipment and technology, as well as to learn effectivemanagement models,” he added.
SamsungElectronics is one of the largest foreign investors in Vietnam, with threemanufacturing plants in Bac Ninh (SEV), Thai Nguyen (SEVT) and HCM City (SEHC). Withan export turnover of over 37 billion VND in 2016, Samsung Electronics inVietnam contributed 20 percent to Vietnam’s exports.
Thisyear, Samsung Electronics in Vietnam has set a target of 7-10 percent growth inexport turnovers. Samsung aims to not only turn Vietnam into the world’ssmartphones and electronic appliance production base, but also create moreopportunities for Vietnamese enterprises in the field of supporting industriesto become involved in Samsung’s global supply chain.-VNA
