In 2008, amid the ongoing economic crisis and Samsung facing competition from Motorola and Nokia, the company made a remarkable move, announcing an investment of $ 650 million in a residential factory. Bac Ninh (Vietnam). It was even more interesting that at that time, the electronic component manufacturing sector in Vietnam did not have many outstanding achievements.

By 2013, Samsung continued to invest in the second complex in Thai Nguyen with a total investment of up to 5 billion USD. A year later, Samsung invested again in a factory to manufacture electrical appliances, this time in District 9 (Ho Chi Minh City).

Mr. Nguyen Anh Tuan, Head of Strategic Support, Samsung Vietnam Complex.

“All the positions we choose to invest in have their own meanings and goals,” said Nguyen Anh Tuan, Head of Strategic Support, Samsung Vietnam Complex at the Industrial Real Estate Forum. Vietnam 2020 with the theme "Welcoming new investment waves".

Back in 2008, the electronic component manufacturing sector in Vietnam was underdeveloped, and the components were still heavily dependent on China. Second, the relocation of factories from China depends on two main routes: sea and air. Lastly, equally important, as Samsung products had to be released one week after production, distribution depended on airmail. Therefore, Bac Ninh is a suitable choice because it is close to Hanoi, Noi Bai airport and Hai Phong port.

Samsung Electronics Vietnam factory in Bac Ninh.

Coming to the second complex, the Company must meet the need of exchanging vehicles and materials with the factory in Bac Ninh within 40 minutes, therefore, Thai Nguyen is the chosen location. The Samsung research center is also located in Hanoi for this reason. In addition, the research needs qualified human and engineer, so the company can take advantage of the highly qualified human resources at the top universities in Hanoi.

Samsung Electronics Vietnam Thai Nguyen Factory.

With the third factory in Ho Chi Minh City, this is a somewhat different choice than the previous two factories, due to household electrical appliances such as refrigerators, air conditioners, large-sized TVs and businesses in the South. has strengths in plastic injection and large part molding so this area is selected. On the other hand, Ho Chi Minh City is also close to airports and seaports, meeting the needs of exporting goods to Europe and North America.

Samsung SEHC factory in District 9, HCMC.

The selection of strategic investments, utilizing local specific resources in Vietnam over the past 10 years, has helped Samsung achieve many outstanding achievements in the smartphone sector. In the third quarter of 2020, the Company continues to be the leading smartphone manufacturer in the world with 22% market share.

Mr. Tuan emphasized that the competitiveness of Samsung in the coming time comes from the ability to provide components of Vietnamese manufacturers, currently accounting for 60%. A lot of phone equipment parts with high complexity such as batteries, metal 3D glasses are 100% manufactured in Vietnam.

Therefore, in the coming time, the Company will continue to support supporting businesses in Vietnam by enhancing their competitiveness. For example, for the same product but next year’s production costs decrease over the previous year. According to Mr. Tuan, this depends a lot on the research and technology development capabilities of Vietnamese enterprises. On the Samsung side, the Company has many training programs to bring Korean experts to partner enterprises working within 3 months to understand the working and production environment to offer innovative solutions.

By the end of 2019, Samsung’s network of supporting businesses in Vietnam is 679, of which 172 are tier 2 suppliers and 42 are 1. The rest are material suppliers. office, consumable materials for production.

At the same time, the Company continues to diversify its purchasing portfolio and promote the development of high-quality human resources through a research center in Hanoi, expected to be completed in 2022 with a capacity of 3,000 people. .

“Galaxy A70 products are designed and manufactured entirely in Vietnam. We hope that in the coming time, the high-end products of Samsung will have the contribution of Vietnamese people, ” Mr. Tuan said.