Officials and representatives of local companies participating in the “Samsung Sourcing Fair 2017” in Bac Ninh Province. (Photo: Samsung) Bac Ninh (VNS/VNA) - Samsung Vietnam hasachieved a significant breakthrough in increasing the localisation rate of itsproducts from 35 percent in 2014 to 57 percent at present.
Participants of the “SamsungSourcing Fair 2017” also heard that the number of Vietnamese enterprisesjoining Samsung’s supply chain has increased dramatically.
A total of 215 enterprises,including 25 tier-1 vendors and 190 tier-2 vendors, are currently participatingin the supply chain for Samsung’s factories in Vietnam, which include SamsungElectronics Vietnam (SEV), Samsung Electronics Vietnam Thai Nguyen (SEVT), SEHCComplex (HCM City), Samsung Display Vietnam (Bac Ninh), Samsung SDI Vietnam (BacNinh) and Samsung Electro-Mechanics Vietnam (Thai Nguyen).
The company expects itstier-1 vendors to increase to 29 in 2017.
The annual workshop andexhibition, which has been held in Vietnam since 2014, aims to discover andconnect domestic component suppliers with Samsung. It seeks ways to enhance thecompetitiveness of hi-tech suppliers in particular and boost development of Vietnam’sparts manufacturing industry in general.
This year’s event, organised in the northern province of Bac Ninhon July 26, drew the participation of 26 enterprises that are expected to act as core agents forsupport industry development in Vietnam.
Company officials noted thatthere were 15 totally new firms nominated by the ministries and enterprisesassociations.
Speaking at the event, ShimWon Hwan, chairman of Samsung Vietnam Complex, said the exhibition onsupporting industry has been considered the first official connection betweenSamsung and Vietnamese enterprises, in a series of activities to assist partssuppliers.
“Enthusiastic participationalong with great determination of potential businesses in this 4th event gaveus impetus to continue implementing practical activities to help them improvetheir productions and enhance their competitiveness. They will play the veryimportant roles as the core agents to create the spreading effect for thegeneral development of supporting industry in Vietnam.”
Pham Anh Duong, chairman of management board of the An PhatPlastic and Green Environment Joint Stock Company, which produces thinpackaging items for exports to Japan, the US and EU, said his company has beenconsidering becoming a local parts supplier for Samsung.
“I think we will surely face difficulties at first time to meetSamsung’s requirements including quality, production process and corporatesocial responsibility,” Duong said.
However, he added that the company is confident because it has 15years of experience in exporting to foreign markets.
An Phat planned to invest 50 million USD in its plant andproduction process to be eligible to participate into the supply chain.
“We expect our revenue to increase by 15 percent over currentlevels after becoming Samsung’s local supplier. Last year, our company’srevenue was 2.1 trillion VND (92.3 million USD) and the expected revenue thisyear would be around 3 trillion VND,” he said.
It created opportunities forsix enterprises to showcase their best performance after finishing the 3-monthsprogramme with Samsung experts.
The consultancy programmewith the Republic of Korea’s experts helps enterprises improve their productionprocess and meet the criteria for supplying products and components to Samsungfactories with products’ error ratio decreasing by an average of 25 percentand production capacity increasing by 30 percent.
From 2015 to date, 26 Vietnameseenterprises have benefited from the programmes.
Starting this year, Samsungwill expand the programme to hi-tech industries, helping local firms to producesophisticated electronic parts and be part of Samsung’s global supply chain forhi-tech products.-VNA
VNA
