Samsung helps apply smart factory model in central Vietnam

South Korean electronic giant Samsung will help apply the smart factory model in the central region, starting with Danang city, following its successful deployment in the northern and southern regions.

A memorandum of understanding on implementing the project was signed Tuesday by Samsung, the Ministry of Industry and Trade's industry agency, and Danang’s Department of Industry and Trade.

The signing took place under the auspices of the Danang Supporting Industries Matchmaking Seminar.

The smart factory model has been applied in five locations in the northern region and an equal number in the southern region since 2022. The application has involved providing knowledge and know-how for businesses in digitalization and development of smart factories in order to join in the global supply chain.

In helping expanding the model’s application to the central region, Samsung will cooperate with relevant sides to select potential businesses, assess firms’ factories, pick suitable staff, conduct training and make recommendations for smart factory establishments.

South Korean experts will directly work with selected firms, providing both theoretical and practical training.

The latest move is part of a collaboration agreement signed in February 2022 between Samsung and Vietnam’s Ministry of Industry and Trade with the target of training 100 experts and helping the establishment of 100 smart factories in Vietnam.

Since 2015, Samsung and the ministry have collaborated to improve the capacities of 379 Vietnamese companies, helping raise the number of Vietnamese level 1 and level 2 vendors for Samsung’s global supply chain from 25 in 2014 to 257 in 2022.

Speaking at Tuesday’s ceremony, Samsung Vietnam CEO Choi Joo Ho said that his company was committed to continuing cooperation with Vietnam in developing the supporting industry and industrial businesses to meet global requirements.

Samsung's four subsidiaries in Vietnam made a total profit of KRW2,999 billion ($2.26 billion) in the first half of this year, down 11.2% year-on-year, according to the South Korean tech giant's interim business report.

In the same period, sales at the four subsidiaries, namely Samsung HCMC CE Complex (SEHC) in Ho Chi Minh City, Samsung Electronics Vietnam (SEV) and Samsung Display Vietnam (SDV) both in Bac Ninh province, and Samsung Electronics Vietnam Thai Nguyen (SEVT) in Thai Nguyen province, dropped 18.1% year-on-year to KRW38,690 billion ($29.18 billion).