Local companies aim to become satellite businesses for foreign firms
Vietnamese enterprises are working hard to become suppliers of parts and accessories for foreign electronics manufacturers.
They concluded Viet Hung reduced the product error rate by 100%, and the plastics quality increased by 100% and the productivity increased by 73%.
According to Tuan, one of the biggest challenges for Viet Hung is that it has to deliver products on schedule. In 2016, Viet Hung’s workers had to work through Tet days to fulfill the orders on time.
Han Myoung Sup said Vietnamese enterprises are diligent and take pains to work, but they still need the support in administration so as to improve productivity and reduce the product error rate.
Also according to Huyen, Canon planned to obtain the localization ratio of 70% three years ago, but it failed to implement the plan.
This is because the manufacturer still cannot find domestic suppliers of parts and accessories. Canon now has 120 suppliers, but the number of Vietnamese suppliers is modest and they can also make very simple products.