At Samsung Electronics factory in Thai Nguyen Province, Vietnam (Source: VNA)The Dau tu (Vietnam Investment Review) newspaper quoted him as saying at a recent meeting of the Ministry of Industry and Trade that in Vietnam, Samsung has also paid attention to developing support industries. While there were only four level-1 Vietnamese vendors for the firm in 2015, this number rose to 20 in 2016.
Foreign direct investment (FDI) companies have used more domestic materials in recent years. The rate of FDI enterprises using goods provided by private Vietnamese suppliers rose from 45 percent in 2013 to 68 percent in 2015.
In early 2016, Minh Nguyen Supporting Industries Joint Stock Company was chosen as a direct vendor of plastic components, mechanical parts and hi-tech moulds for Samsung Electronics HCMC CE Complex at the Saigon Hi-tech Park, based in Ho Chi Minh City. It is among few Vietnamese businesses which Samsung includes in its direct supply chain.
The Korean firm said since it invested in multi-billion-USD projects in Vietnam, it is difficult to find vendors that are completely Vietnamese-owned. That fact is partly because the country has yet to have a mobile phone manufacturing industry, and most support businesses fall short of Samsung’s requirements.
Samsung pledged to invest 14.8 billion USD in the Southeast Asian nation as of 2016, about 10.1 billion USD of which has been disbursed.
Samsung Electronics and its affiliates here raked in 46.3 billion USD in revenue last year, including 39.9 billion USD in exports – rising by 9.9 percent from 2015.
Bang Hyunwoo said aside from exports, Samsung Electronics and its subsidiaries have helped improve Vietnam’s economic growth quality.
He said that while only 35 percent of materials and equipment used by Samsung factories in Bac Ninh and Thai Nguyen provinces were sourced domestically in 2014, the figure increased to 51 percent in 2016.
With expanded investment and production, hi-tech components and spare parts made in Vietnam have been provided for Samsung’s factories in Vietnam and around the world, he added.
There are big opportunities for Vietnamese enterprises to be part of Samsung’s supply chain as the group is continuing to expand its operations and wishes to seek more local vendors.-VNA
VNA
