Business

Samsung to seek more Vietnamese vendors in 2017

Samsung will raise the number of its level-1 suppliers in Vietnam to 29 this year, according to Deputy General Director of Samsung Vietnam Bang Hyunwoo.
Samsung to seek more Vietnamese vendors in 2017 ảnh 1At Samsung Electronics factory in Thai Nguyen Province, Vietnam (Source: VNA)
Hanoi (VNA) – Samsung will raise thenumber of its level-1 suppliers in Vietnam to 29 this year, according to DeputyGeneral Director of Samsung Vietnam Bang Hyunwoo.

The Dau tu (Vietnam Investment Review) newspaperquoted him as saying at a recent meeting of the Ministry of Industry and Tradethat in Vietnam, Samsung has also paid attention to developing supportindustries. While there were only four level-1 Vietnamese vendors for the firmin 2015, this number rose to 20 in 2016.

Foreign direct investment (FDI) companies haveused more domestic materials in recent years. The rate of FDI enterprises usinggoods provided by private Vietnamese suppliers rose from 45 percent in 2013 to68 percent in 2015.

In early 2016, Minh Nguyen Supporting IndustriesJoint Stock Company was chosen as a direct vendor of plastic components,mechanical parts and hi-tech moulds for Samsung Electronics HCMC CE Complex atthe Saigon Hi-tech Park, based in Ho Chi Minh City. It is among few Vietnamesebusinesses which Samsung includes in its direct supply chain. 

The Korean firm said since it invested inmulti-billion-USD projects in Vietnam, it is difficult to find vendors that arecompletely Vietnamese-owned. That fact is partly because the country has yet tohave a mobile phone manufacturing industry, and most support businesses fallshort of Samsung’s requirements.

Samsung pledged to invest 14.8 billion USD inthe Southeast Asian nation as of 2016, about 10.1 billion USD of which has beendisbursed.

Samsung Electronics and its affiliates hereraked in 46.3 billion USD in revenue last year, including 39.9 billion USD inexports – rising by 9.9 percent from 2015.

Bang Hyunwoo said aside from exports, SamsungElectronics and its subsidiaries have helped improve Vietnam’s economic growthquality.

He said that while only 35 percent of materialsand equipment used by Samsung factories in Bac Ninh and Thai Nguyen provinces weresourced domestically in 2014, the figure increased to 51 percent in 2016.

With expanded investment and production, hi-techcomponents and spare parts made in Vietnam have been provided for Samsung’sfactories in Vietnam and around the world, he added.

There are big opportunities for Vietnameseenterprises to be part of Samsung’s supply chain as the group is continuing toexpand its operations and wishes to seek more local vendors.-VNA
VNA
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