Samsung Strives to Include More Vietnamese Firms into Supply Chain

Two Vietnamese employees at SEVT. Photo: Reuters

South Korean conglomerate Samsung Vietnam is putting more efforts in raising the number of Vietnamese suppliers, part of its strategy to boost the localization rate and turn Vietnam into one of its manufacturing hubs, VnEconomy reported.

Samsung has initiated its 2017 consultancy program for 12 Vietnamese companies to help them join its supply chain, bringing the number of beneficiaries to 26 to date.

The program, which started in 2015, has targeted printing and packaging companies. This year, it will expand to hi-tech sectors such as electricity and electronics so that more local firm can produce high-value parts.

This is the first time two Samsung subsidiaries, Samsung Display Vietnam and Samsung Electro Mechanics Vietnam, will join this program.

Under the program, South Korean experts will assess capacities of Vietnamese companies, and help them improve their production process and meet Samsung requirements.

The shift from consultancy and support to hi-tech will aid Vietnamese companies in manufacturing more sophisticated and deepen their participation in higher value chain, said Han Myoung Sup, CEO of Samsung Vietnam.

As many as 201 Vietnamese companies, comprising 23 tier-1 ones and 178 tier-2 ones, are supplying parts for Samsung Electronics Vietnam (SEV) in Bac Ninh province, Samsung Electronics Vietnam Thai Nguyen (SEVT) and SEHC (HCM City).

The number of tier-1 suppliers is expected to reach 29 by the end of this year. Samsung Vietnam’s local input is targeted to increase to 57% this year from 35% in 2014.

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TUAN MINH