How are Vietnamese enterprises participating in Samsung’s supply chain doing?

Tram Ho

With its influence, the Samsung Group entailed a supplier ecosystem of tens of billions of dollars in revenue. But most of the complicated electronic component vendors are foreign businesses coming to Vietnam according to the call of Chaebol Korea, they are also longtime names in the industry.

Doanh nghiệp Việt tham gia vào chuỗi cung ứng của Samsung đang làm ăn ra sao? - Ảnh 1.

With a limited level of technology and technology, it is difficult for domestic firms to step into key components of the supply chain. Instead they are assigned to simpler tasks such as manufacturing packaging, printing, supplying shock-resistant foam, simple plastic parts, screws, or such as catering, waste disposal, and safety. security, hygiene …

In recent years, both the Government, local authorities and Vietnamese businesses are working hard to squeeze into the supply chain of Samsung. Because obviously this is a lucrative piece of cake for those who can afford it. The training programs for Vietnamese experts are also coordinated by the Ministry of Industry and Trade with Samsung to produce hundreds of employees each year.

By the end of 2019, 42 Vietnamese enterprises became tier 1 suppliers for Samsung, this number increased 10 times after 5 years, in 2014 only 4 units. Samsung’s goal by the end of this year is to bring the total number of units to 50. That is not to mention that hundreds of tier-2 supply companies are also contributing to the world’s largest electronics production chain.

Samsung has for many years committed to the Government in supporting domestic enterprises to develop supporting industries. Accordingly, Samsung experts will survey and evaluate businesses, directly consult and work together to support businesses to improve production processes, increase the capacity to participate in the supply chain not only for Samsung but also while other FDI enterprises invest in Vietnam.

At the end of September this year, the Ministry of Industry and Trade – Bac Ninh province – Samsung Vietnam signed a memorandum of understanding on cooperation to support businesses. Bac Ninh is the second province after Hai Duong actively implements, in this locality, Samsung is setting up two manufacturing factories Samsung Display Vietnam and Samsung Electronic Vietnam.

We would like to take as examples some Vietnamese suppliers with close business relationship with Samsung who have relatively stable sales.

Viet Hung Packaging Co., Ltd is one of the first and famous Samsung carton and paper pallet suppliers, located in Hung Yen province.

The company’s revenue last year nearly reached 2,000 billion, net profit 75 billion. In addition to Samsung as the main partner, Viet Hung’s products are also provided to Canon Vietnam, a Japanese camera manufacturer.

Another unit that also supplies Samsung packaging is Goldsun Packaging. However, the company’s partners are more diversified, including other units such as Canon, Carlsberg, Heineken, Cocacola, Ferroli, Kangaroo …

In recent years, sales from Samsung are reported to account for about 50% of Goldsun’s structure. Actual scale is increasing, reaching more than 1,400 billion VND last year. However, the company’s profits increasingly show signs of going down, the 2019 net profit is only 7 billion dong. In previous years, Goldsun’s profit was only around 10 billion dong.

Another unit that also plays a very important role in keeping Samsung apparatus running smoothly, Ba Sao Food Service Co., Ltd. provides tens of thousands of meals a day for SEV and SEVT’s restaurants. . The number of servings provided by Ba Sao has increased many times over the years along with the growth in staffing scale of Samsung factories.

In 2019, Ba Sao’s revenue is nearly 1,200 billion VND, profit after tax brings about 15 billion. Notably, this result is almost double the revenue of Noi Bai Meal Joint Stock Company, a supplier in the airline industry.

Doanh nghiệp Việt tham gia vào chuỗi cung ứng của Samsung đang làm ăn ra sao? - Ảnh 2.
Doanh nghiệp Việt tham gia vào chuỗi cung ứng của Samsung đang làm ăn ra sao? - Ảnh 3.

On a smaller scale, factories of Thanh Long Electronics Manufacturing JSC, a tier 2 supplier to SEHC, Ho Chi Minh City achieved sales of nearly VND 740 billion last year and grew rapidly. Thanh Long is one of the few Vietnamese enterprises that can provide the relatively complex PCB electronic circuit board for Samsung.

Or Tien Thanh Joint Stock Company, a secondary supplier of Samsung in the packaging field, last year earned 644 billion dong. Minh Nguyen Supporting Industry Joint Stock Company (Ho Chi Minh City) is one of the first units selected to supply plastic components and molds for Samsung with a turnover of VND 437 billion; HTMP Vietnam specializes in manufacturing plastic molds and injection, bringing in VND 419 billion; Manutronics – a tier 2 supplier to Samsung, specializes in optical disc production (CD, DVD, CD-R), earns about 221 billion VND in 2019.

However, in terms of efficiency, Minh Nguyen had a heavy loss of nearly 50 billion dong in the last two years. The remaining businesses have profits only symbolic, or from 10-20 billion.

Share the news now

Source : Genk