Vietnam hopes to build supporting industries for Samsung

Thanh Nien News

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Visitors check for accessories displayed at a supporting industries exhibition in Ho Chi Minh City. Photo credit: TBKTSG Visitors check for accessories displayed at a supporting industries exhibition in Ho Chi Minh City. Photo credit: TBKTSG

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Korean electronics giant Samsung has agreed to cooperate with Vietnam's government to bolster the local supporting industries in the technology sector, an insider said.
Professor Nguyen Mai, chairman of the Vietnam Association of Foreign Investment Enterprises, told Thoi Bao Kinh Te Saigon that relevant government agencies have come up with a plan to develop the supporting industries for Samsung and the company has agreed to cooperate.
According to Mai, the project will involve Samsung, his association, the Ministry of Investment and Planning, the Ministry of Science and Technology and Vietnam Association of Mechanical Industry.
He said his association will help organize conferences that will allow Samsung to let local businesses know what it needs to expand its tech manufacturing here.
Samsung hopes to save on costs by sourcing accessories from plants inside Vietnam, which so far only provide low-value items like packaging, he said.
Nguyen Van Dao, deputy general director of Samsung Vina, said Vietnam’s mobile phone industry is too young to be a major supplier to Samsung.
But Vietnam can develop its supporting industries by starting small, Dao said.
He said Samsung's production of hundreds of millions of products a year in the northern provinces of Bac Ninh and Thai Nguyen has drawn foreign providers to Vietnam.
Local businesses could replace them, he said.
“In the long term, Vietnam will form supporting industries for mobile phones and other electronics,” Dao said.
By working for foreign providers, Vietnamese businesses could learn from their management experience and technological capacity to grow from bottom-level providers to potentially vital partners, he said.
Insiders hope the partnership will usher in an outcome similar to the success experienced in Vietnam's motorbike-supporting sector, which now provides up to 90 percent of the accessories required by leading manufacturers like Honda, Yamaha or SYM.
The thriving supporting industry has prompted Vietnam to become a global production hub.

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