Vietnamese suppliers to become part of Samsung’s global value chain

Joo Ho Choi, general director of the Samsung Vietnam Complex, was the only representative from a foreign-invested enterprise to speak at a conference on February 12 in Quang Ninh on the government’s action plan to implement Resolution No.30-NQ/TW dated November 23 from the Politburo on socioeconomic development, national defence, and security in the Red River region to 2030, with a vision to 2045.

At the event, Choi emphasised the two primary goals of Samsung’s research and development (R&D) centre in Hanoi that was launched in late December.

“The first aim is to broaden the scope of research and strengthen competency to make the Samsung R&D Center in Vietnam not only a leading research centre in Southeast Asia, but also on a global scale,” he said.

“Samsung also plans to foster Vietnam’s future tech talent through scholarships in the technology sector, public-private partnerships with prominent universities in Vietnam, and internship programmes. This is the second task that will contribute to laying the foundations for the nation’s young talent,” Choi continued.

The general director revealed that in Vietnam, the number of Tier 1 and Tier 2 suppliers in Samsung’s global supply chain has witnessed a ten-fold increase, from 25 companies in 2014 to 257 by the end of 2022.

This is the result of Samsung Vietnam’s determination to launch initiatives to increase the accessibility to new technologies and improve advanced governance capabilities.

Since 2015, experts from Samsung South Korea have been continuously working with around 400 Vietnamese firms to enhance competitiveness and improve product quality.

The participants have reported positive outcomes, including a 40 per cent increase in their productivity and a 50 per cent reduction in manufacturing defects after only three months of consultation and support. 33 qualifying businesses are being prioritised for Samsung Vietnam’s network of suppliers.

Samsung Vietnam has also provided professional training schemes for more than 400 local business consultants since 2018.

The Ministry of Industry and Trade and Samsung Vietnam signed an MoU last year on cooperation for smart factory development. Samsung is slated to share its expertise in smart manufacturing with 50 enterprises, according to the two-year roadmap.

Currently, Samsung has completed smart factory projects with 26 local businesses and will continue to replicate them with other organisations in the near future.

“We look forward to strengthening our partnerships with Vietnamese businesses to help domestic manufacturers develop and become part of Samsung’s global value chain. We will always be a reliable partner of the Vietnamese government on the journey to success and shared prosperity,” concluded Choi.

Vietnam Investment Review