The Hanoitimes - Companies moving their businesses into Vietnam are not for Samsung to decide, but are entirely based on their own decisions and capacities.
Samsung Electronics Vietnam on July 4 denied inviting 200 foreign suppliers to participate in the component supply chain used by its plants in Vietnam, refuting a previous statement by by Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc.
In order to become Samsung's supplier, enterprises regardless of being foreign or domestic must prove their capabilities and strong determination to join its global value chain, the company stated.
"It is not true that Samsung has invited them or intends to bring foreign companies into Vietnam to join our chain. Companies' decision to move their businesses into Vietnam are entirely based on their own decision," Samsung added.
Currently, around 200 tier-1 vendors are joining Samsung's supply chain in Vietnam, including 29 Vietnamese companies.
The number of Vietnamese suppliers is expected to rise to 50 by 2020. To make it happen, Samsung has been supporting local firms in acquiring expertise from South Korean experts and improving their capacities.
Samsung`s four subsidiaries in Vietnam posted a combined revenue of VND405 trillion (US$20.5 billion) and profit of VND41.1 trillion (US$2.08 billion) in the first quarter this year, both increasing 50% year-on-year, according to the companies's quarterly financial statements.
Among those four, Samsung Display Vietnam (SDV) witnessed the highest growth rate in terms of revenue. Compared to the same period of last year, the company's revenue increased by 50% and its profit rose seven-fold.
The other three companies are Samsung Electronics Vietnam Bac Ninh (SEV), Samsung Electronics Vietnam Thai Nguyen (SEVT) and Samsung Electronics Ho Chi Minh (SEHC).
In just a decade, Samsung has increased its investment capital in Vietnam from US$670 million in 2008 to over US$17.3 billion in 2018.
In 2017, Vietnam's export turnover reached US$214 billion, of which Samsung alone contributed over US$54 billion, accounting for one fourth of the total.