Samsung seeks to expand supply base in Vietnam

10:25 | 08/01/2018 Companies

(VEN) - The number of Vietnamese suppliers of Samsung Electronics Vietnam and Samsung Electronics Vietnam Thai Nguyen (SEV/SEVT) has grown from four companies in 2014 to 29 tier-1 vendors and nearly 200 tier-2 vendors in 2017. SEV/SEVT expects to have 50 tier-1 vendors by 2020.

samsung seeks to expand supply base in vietnam

SEV/SEVT recently surveyed six Vietnamese tier-2 vendors and provided them with consultancy to improve the manufacturing of components for Samsung’s factories in Vietnam.

These companies include Manutronics Vietnam Joint Stock Company, Tien Thanh Joint Stock Company, Bac Viet Technology Joint Stock Company (in Bac Ninh Province), Nhat Minh Company (Binh Duong), Minh Man Printing Trading Production Company Limited and Vinavit (in Ho Chi Minh City).

Based on the survey results, Samsung’s experts found that all six companies had made great progress and could be upgraded to tier-1 level. Three months after joining the consulting program, the Manutronics Vietnam Joint Stock Company has reduced product mistakes and equipment loss rate by 63 percent and 82 percent, respectively; the Tien Thanh Joint Stock Company has increased labor productivity from 600 products per hour to 700; the Bac Viet Technology Joint Stock Company has reduced inventories from 37 percent in the first eight months to 24 percent in November. Samsung is considering signing contracts with the Minh Man Printing Trading Production Company, Nhat Minh Company and Vinavit.

According to Samsung Electronics Vietnam General Director Shim Won Hwan, along with providing consultancy for the six companies, Samsung has achieved the goal of increasing the number of Vietnamese tier-1 vendors to 29 companies in 2017.

The consulting program has been implemented since 2015, targeting not only Samsung’s vendors but also other Vietnamese companies to help promote support industries in Vietnam, Shim Won Hwan said.

He added that Samsung wants to maintain tight coordination with Vietnamese associations and government bodies, and expects to have 50 Vietnamese tier-1 vendors by 2020. Samsung will seek suitable companies through exhibitions and workshops on support industries.

To achieve the 2020 target, Samsung has suggested forming a consultation committee to expand the program. Members of the committee will include officials from the Ministry of Industry and Trade, departments of industry and trade of provinces and cities, the Vietnam Support Industry Association, Vietnam Electronic Industries Association, and academic experts.

Development of the expanded program is scheduled to start this month and create a team of major Vietnamese experts to provide support industry training for companies nationwide.

Hoang Chau