Samsung Suppliers in Vietnam Surge to 190

Tuan Minh

18:34 22/06/2016

BizLIVE - More companies in Vietnam supply components and spare parts for Samsung’s factories.

Samsung Suppliers in Vietnam Surge to 190

Vietnamese laborers work in a Samsung plant. (Photo:

The number of Vietnamese suppliers for Samsung has risen sharply to 190 currently from several dozens a year earlier, said Han Myoung Sup, Samsung Vietnam’s general director, said a conference on supporting industries in Hanoi on June 21.
Of the amount, the number of tier-1 Vietnamese vendors joining Samsung’s supply chain has tripled year-on-year to 12, while 178 Vietnamese companies sell parts to Samsung as tier-2 vendors.
For Samsung Electronics Vietnam (SEV) factories in Thai Nguyen and Bac Ninh provinces in the North, six local firms are suppliers as tier-1 vendors and 155 ones as tier-2 vendors.
Meanwhile, for Samsung Electronic HCM City complex in the South, there are 6 tier-1 vendors and 23 tier-2 vendors.
However, the majority of the firms supply low value-added services such as printing and packing. For example, only three companies provide electronic devices for Samsung plants in the northern region.
The value of services and products provided by tier-1 vendors hovers around $40 million while that of tier-2 vendors stands at $70 million.
“Vietnamese enterprises should seize the opportunity to join the global supply chain by connecting with FDI enterprises operating in Vietnam such as Samsung,” said Nguyen Cam Tu, deputy minister of industry and trade.
“We found that Vietnamese enterprises really have the potential and capability. In the future, Samsung will continue to cooperate with the Vietnamese government to conduct more counseling sessions and training courses to improve the capability of local enterprises,” Han Myoung Sup said.
The counseling sessions are expected to offer more opportunities for enterprises to join their supply chain, he added.
Any enterprise that meets Samsung’s criteria in quality-due delivery-price has the opportunity to become Samsung’s vendor, he added, asking Vietnamese firms to focus on developing technical human resources and product quality management to meet the criteria of a global supplier.
Samsung is now the largest sole foreign investor in Vietnam, with its investments reaching some $15 billion so far.