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Samsung Vietnam helps local firms join global supply chain

Leaders of the northern province of Bac Ninh and Samsung Vietnam on August 26 made a trip to evaluate the results of the two enterprises including Hanpo Vina Joint Stock Company and Thinh Vuong Manufacturing and Trading Co Ltd participating in the “domestic business improvement consulting programme”.

This project was implemented by Korean experts of Samsung over about 10 weeks after assessing the actual production capacity of enterprises in Bac Ninh province. The project’s goal is to improve productivity; management capacity and product supply capacity so that Vietnamese enterprises could join the supply chain of large global corporations like Samsung.

Hanpo Vina Joint Stock Company is a supplier of plastic injection products for Samsung’s first-tier contractors. The company said that after the improvement process, the product defect rate (NG) decreased by 53 percent, the factory was redesigned to easily locate inventory and manage actual inventory more effectively and ensure the first-in-first-out rule. In addition, it has also built a production management system that compares actual output with the plan, thereby ensuring on-time delivery.

Thinh Vuong Manufacturing and Trading Co Ltd is the first-tier supplier of Samsung Display Vietnam’s factory providing plastic display tray products. After the improvement, its NG, the mould replacement time and the loss rate incurred during the production process was reduced by 20 and 30 percent respectively. In addition, the company has also built a system of on-time delivery, sufficient quantity, and a quality control system from the production stage.

Leaders of the northern province of Bac Ninh and Samsung Vietnam evaluate improvement results at Hanpo Vina.

The consulting programme helps companies easily upgrade into a “smart factory”.

Chairman of the Bac Ninh Provincial People’s Committee Nguyen Hương Giang said currently, as the COVID-19 pandemic situation is well controlled in the province, she hoped that more businesses would participate in the consulting programme.

Choi Joo Ho, General Director of Samsung Vietnam, said: “I highly appreciate the determination and efforts of businesses to overcome difficulties caused by the COVID-19 pandemic with the aim to successfully fulfil the improvement consulting programme at this time. I hope that the positive changes after this improvement programme will be followed by strengthening the underlying competitiveness of companies. In the meantime, I also expect that this project will spread to all of Vietnam, contributing to its economic development.”

Along with efforts to accompany the Vietnamese Government to improve the competitiveness of domestic suppliers in general across the country, up to now, Samsung has consulted 260 enterprises.

The number of Samsung’s local suppliers has been expanded from four enterprises in 2014 to 50 tier-1 and 191 tier-2 suppliers in 2020.

VNA