Monday, 19 Aug 2019
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ECONOMY

Samsung intends to bring in more Vietnamese suppliers

Updated at Tuesday, 27 Nov 2018, 16:30
The Hanoitimes - Samsung has been in close contact with the Ministry of Industry and Trade (MoIT), government agencies and associations to identify qualified local enterprises that could potentially become its suppliers.
Samsung Vietnam has been searching for potential local companies to joint its consulting programs, which would enhance their capacities and probability to joint the Korean giant’s global supply chain, according to Shim Won Hwan, Samsung Vietnam’s CEO. 
 
Illustrative photo.
Illustrative photo.
Starting in 2015, companies participating in the consulting programs have witnessed an average increase in productivity of over 30%, said Shim, adding that this is the main reason for Samsung to expand the scale of this program. 

Previously, Samsung has been in close contact with the Ministry of Industry and Trade (MoIT), government agencies and associations to identify qualified local enterprises, which would later join the program. 

Since April 2018, Samsung in collaboration with the MoIT has been providing training courses for 200 Vietnamese consultants. Once completed, those consultants would support local companies to enhance productivity, in turn developing Vietnam’s support industry. 

In comparison with the localization rate of 25% in 2014, Samsung’s current rate has increased to 58%. The number of local enterprises being Samsung’s Vietnamese tier-1 vendors have increased from 4 in 2014 to 35 as of present. By 2020, the number is projected to reach 50. 

Over the past ten years, Samsung has invested a total of over US$17 billion in Vietnam and employed 160,000. In 2017, Vietnam's export turnover reached US$214 billion, of which Samsung alone contributed over US$54 billion.

Samsung's four subsidiaries in Vietnam posted revenue of a combined VND405 trillion (US$20.5 billion) and a profit of VND41.1 trillion (US$2.08 billion) in the first quarter this year, both increasing 50% year-on-year, according to the company's quarterly financial statements.

According to Samsung's statistics, around 50% of Samsung's smartphones and tablets are produced in Vietnam and exported to 128 countries and territories, including the US, Europe, Russia and Southeast Asia. 
Hai Yen
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