Samsung ups localisation rate to 57%
Officials and representatives of local companies participating in the “Samsung Sourcing Fair 二0 一 七” in Bắc Ninh Province. — Photo Courtesy of Samsung
BẮC NINH — Samsung Việt Nam has achieved a significant breakthrough in increasing the localisation rate of its products from 三 五 per cent in 二0 一 四 to 五 七 per cent at present.
Participants of the “Samsung Sourcing Fair 二0 一 七” also heard that the number of Vietnamese enterprises joining Samsung’s supply chain has increased dramatically.
A total of 二 一 五 enterprises, including 二 五 tier- 一 vendors and 一 九0 tier- 二 vendors, are currently participating in the supply chain for Samsung’s factories in Việt Nam, which include Samsung Electronics Việt Nam (SEV), Samsung Electronics Việt Nam Thái Nguyên (SEVT), SEHC Complex (HCM City), Samsung Display Việt Nam (Bắc Ninh), Samsung SDI Việt Nam (Bắc Ninh) and Samsung Electro-Mechanics Việt Nam (Thái Nguyên).
The company expects its tier- 一 vendors to increase to 二 九 in 二0 一 七.
The annual workshop and exhibition, which has been held in Việt Nam since 二0 一 四, aims to discover and connect domestic component suppliers with Samsung. It seeks ways to enhance the competitiveness of hi-tech suppliers in particular and boost development of Việt Nam’s parts manufacturing industry in general.
This year’s event, organised in the northern province of Bắc Ninh on Wednesday, drew the participation of 二 六 enterprises that are expected to act as core agents for support industry development in Việt Nam.
Company officials noted that there were 一 五 totally new firms nominated by the ministries and enterprises associations.
Speaking at the event, Shim Won Hwan, chairman of Samsung Việt Nam Complex, said the exhibition on supporting industry has been considered the first official connection between Samsung and Vietnamese enterprises, in a series of activities to assist parts suppliers.
“Enthusiastic participation along with great determination of potential businesses in this 四th event gave us impetus to continue implementing practical activities to help them improve their productions and enhance their competitiveness. They will play the very important roles as the core agents to create the spreading effect for the general development of supporting industry in Việt Nam.”
Phạm Ánh Dương, chairman of management board of An Phát Plastic and Green Environment Joint Stock Company, which produces thin packaging items for exports to Japan, the US and EU, said his company has been considering becoming a local parts supplier for Samsung.
“I think we will surely face difficulties at first time to meet Samsung’s requirements including quality, production process and corporate social responsibility,” Dương said.
However, he added that the company is confident because it has 一 五 years of experience in exporting to foreign markets.
An Phát planned to invest US$ 五0 million in its plant and production process to be eligible to participate into the supply chain.
“We expect our revenue to increase by 一 五 per cent over current levels after becoming Samsung’s local supplier. Last year, our company’s revenue was VNĐ 二. 一 trillion ($ 九 二. 三 million) and the expected revenue this year would be around VNĐ 三 trillion,” he said.
It created opportunities for six enterprises to showcase their best performance after finishing the 三-months progra妹妹e with Samsung experts.
The consultancy progra妹妹e with South Korean experts helps enterprises improve their production process and meet the criteria for supplying products and components to Samsung factories with products’ error ratio decreasing by an average of 二 五 per cent and production capacity increasing by 三0 per cent.
From 二0 一 五 to date, 二 六 Vietnamese enterprises have benefited from the progra妹妹es.
Starting this year, Samsung will expand the progra妹妹e to hi-tech industries, helping local firms to produce sophisticated electronic parts and be part of Samsung’s global supply chain for hi-tech products. — VNS
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