Business

Samsung strives to increase Vietnamese suppliers to 500 by 2020

SGGP
Samsung’s domestic supply ratio in Vietnam raised from 34 percent in 2014 to 57 percent now and the group is striving to increase the number of Vietnamese suppliers to 500 businesses by 2020.
 

Goldsun Plant, one of suppliers of Samsung Vietnam (Photo: SGGP)

Goldsun Plant, one of suppliers of Samsung Vietnam (Photo: SGGP)

That was announced by a Samsung representative at a support industry workshop exhibition hosted by the HCMC Department of Industry and Trade and Samsung Electronic Ho Chi Minh Complex (SEHC) which was attended by over 100 businesses.
At the event, Samsung wanted to choose 30 businesses to attend the group’s supply chain.
The SEHC now has nearly 7,000 workers, producing TV, refrigerators, washing machines and vacuum cleaners. Samsung’s export turnover in Vietnam has been increasing, reaching US$2 million in the third quarter this year. This has created opportunities for Vietnamese firms to attend the global supply chain of the group.
Head of Saigon Hi-Tech Park (SHTP) Management Board Le Hoai Quoc said that Samsung is the largest investor of SHTP with $2 billion investment capital, of which 50 percent has been disbursed.
Domestic supply chain is determined to be the foundation to attract and keep foreign direct investment (FDI) companies. Therefore, SHTP has applied assistance policies to meet the requirement of developing domestic supply chains for domestic and FDI firms including Samsung.
Many businesses at the event said that it was not easy to meet requirements to become Samsung suppliers in which include improvement of productivity and production process and on time delivery.
A representative of Duy Khanh Company said that factors such as productivity and production process can be improved but on time delivery is very difficult amid worsening traffic jam.
Many companies have been on the trend of moving to industrial parks to have more advantageous conditions to improve production ability and meet requirements of global suppliers, he added.

By AI VAN – Translated by Hai Mien

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