Samsung local suppliers jump 200% in one year

At the workshop, aimed at boosting the localization rate of Samsung’s supply chain, the dialogue centred around alternative solutions for improving the competitiveness of local hi-tech companies.

Mr Su noted the total number of local suppliers nationwide is now 190, comprised of tier-1 and tier-2 vendors of 12 and 178, respectively.

The Samsung plant in Thai Nguyen lists six local tier-1 along with 155 tier-2 distributors on their supplier’s list while the plant in Ho Chi Minh City lists six tier-1 and 23 tier-2 merchants.

We are going the extra mile and working in close concert with the government to ensure Vietnam and Ho Chi Minh City local companies are accorded an equal opportunity with foreign competitors, Mr Su told the audience.

He said he was happy to announce that the number of local companies since last year’s workshop that had joined Samsung’s supply chain as tier-1 vendors had increased from four to 12, an astonishing 200% increase.

This shows that local companies have seized the opportunity to join not only Samsung but the global supply chain of many other foreign sector companies operating in Ho Chi Minh City, he added.

Han Myoungsup of Samsung in turn pointed out that local companies really do have the potential and capability. In the future, he affirmed that Samsung would continue to work with the Vietnam government to conduct more training courses to improve the capability of local businesses.

He said Samsung was hopeful of offering more opportunities for locals to join their supply chain, and help the electronics giant enhance its global competitiveness as well as consolidate the company’s long-term development in Vietnam.

He emphasized that any companies that meet Samsung’s criteria in quality, timeliness and price have the opportunity to become a supplier of the company. He also asked local companies to pay more attention to developing technical human resources and product quality management to meet the criteria.

The workshop attracted more than 400 guests including representatives from governmental authorities and over 250 local companies.

At the conference there was also an exhibition area displaying information on 22 of Samsung’s tier-1 vendors in Vietnam and showcasing seven local companies that completed the pilot consulting phase.

The workshop and exhibition discussed government strategy and solutions to develop the support industry – a key factor to quickly and sustainably develop major industries in Vietnam.