Samsung pledges support to help Vietnamese firms join its supply chain

Samsung Electronics Vietnam is willing to support more Vietnamese companies in joining its supply chain, as local businesses and authorities seek to deepen integration with foreign-invested manufacturers.

The commitment was made at a conference with supporting industries enterprises in the northern province of Bac Ninh on Thursday, during which officials and businesses discussed ways to increase Vietnamese engagement in the supply chains of FDI firms.

Kim Yong-sup, deputy general director of Samsung Vietnam, said the company had recently signed a program to support Vietnamese enterprises through 2030 and remained committed to increasing the number of local suppliers.

“Samsung is making every effort to help Vietnamese companies participate in our supply chain,” Kim said, adding that businesses also need to proactively invest in facilities and improve production capabilities, while the government should introduce more incentives.

He highlighted the importance of developing a high-quality workforce, describing it as a key factor in enabling Vietnamese firms to meet the requirements of multinational manufacturers.

Cho Young-ho, head of purchasing at Samsung Electronics Vietnam, said the company had surveyed a number of domestic businesses and identified five companies with strong potential. However, these firms remain relatively small and have yet to fully satisfy Samsung’s standards to become official suppliers. He called on Vietnamese authorities to continue supporting local companies to strengthen their capabilities.

Local businesses attending the conference said one of the biggest challenges is not only improving manufacturing capacity but also gaining access to procurement opportunities from multinational companies.

Nguyen Minh Quang, a business owner in Bac Ninh, said his firm had previously provided services to several foreign-invested enterprises. However, he noted that companies must first obtain contractor codes to participate in supply chains, while information on procurement packages offered by FDI firms remains difficult to access.

Quang proposed that Bac Ninh establish a database to connect domestic enterprises with multinational companies operating in Vietnam.

Nguyen Van Hung, founder of an automation and mechanical engineering company in Bac Ninh, said it had taken his company four years of research and process improvements before its robotics and automation products could be accepted by foreign manufacturers.

“This year our revenue has started to surge, but the journey to enter the supply chains of FDI enterprises has been extremely arduous,” Hung said.

He suggested that Bac Ninh reserve land within industrial parks for small and medium-sized enterprises, allow long-term leases with annual payments, and introduce additional tax and land incentives for innovative businesses.

Mai Son, Vice Chairman of the Bac Ninh People’s Committee, urged Samsung Vietnam to provide more information on its supplier selection criteria so that local companies can better prepare and gradually increase localization rates among FDI manufacturers.

The province also plans to build a database of local businesses and has requested foreign companies, including Samsung Vietnam, to disclose procurement opportunities to give Vietnamese firms greater access to global supply chains.

Since establishing its first mobile phone factory in Yen Phong I Industrial Park in 2008, Samsung has expanded its footprint in Bac Ninh with three major projects: Samsung Display, Samsung Electronics, and Samsung SDI.