The number of Vietnamese firms in Samsung's supply chain tripled last year, according to reports at a Samsung seminar on the Development of Vietnam’s Support Industries on June 21.

To help local enterprises to enhance their production capacity, Samsung has sent nine experts from South Korea to Vietnam for help.

The number of Level 1 suppliers had increased from four to 12 and there are 178 Vietnamese Level 2 suppliers. Local firms have improved the quality of their products. The inventory level at Goldsun Company decreased by 60% and the equipment error rate decreased by 72%. The inventory and equipment error rate at Mida Company have also reduced by 54% and 52% respectively.

Han Myoungsup, general director of Samsung Vietnam, said anyone could become their suppliers as long as they can meet requirements about quality, deadline and price. He suggested that Vietnamese firms should put more priority on technical training to ensure better quality as that was the only to meet the global supply chain's strict criteria.

Han Myoungsup, general director of Samsung Vietnam

This is the third time Samsung has held a sourcing fair and seminar as part of its search for qualified local suppliers and a venue to discuss methods to improve the capability and competitiveness of local firms.

Samsung produces hi-tech devices including mobile phones and home appliances in Vietnam. They have co-operated with local and FDI firms in Vietnam. "But on our operating principles, we hope to work with more local spare-part suppliers. That's why we started the fair and seminar to find those suppliers," Han Myoungsup said.

Firms can find more information, assess their capability and join discussions at the seminar. However, Han said government should also issue more friendly policies, give financial support to small and medium-sized firms as well develop long-term strategies for sustainable co-operation between local firm and foreign investors.