NEWS & EVENTS

"Narrow door" for businesses joining the supply chain of Samsung and Panasonic?

25/07/2020
The conference "Supporting Vietnamese enterprises to develop sustainable value chains" took place on 24-7 with the participation of hundreds of Vietnamese enterprises, but notably, only two of these enterprises have participated. Access to the supply chains of Samsung and Panasonic.

Multinational companies want to find partners in Vietnam

The situation that Vietnamese enterprises are difficult to "stand-in" to become a link in the global supply chain of multinational corporations present in Vietnam has been going on for many years but the level of improvement is very low.At the conference "Supporting Vietnamese enterprises to develop a sustainable value chain", although hundreds of enterprises participated in the hall, only two businesses were able to participate in the conference. Samsung and Panasonic suppliers.

This figure again shows that the percentage of Vietnamese enterprises participating in the global supply chain is too small.
Ms. Dao Thi Thu Huyen - Senior Manager of Canon Vietnam said that this multinational company has 340 suppliers globally, of which 147 are in Vietnam. Of these, there are 20 pure Vietnamese suppliers.

“This number has not increased in recent years. Canon has localized 65%, but most of them "fall" into foreign-invested enterprises (FDI). Canon currently has 59 items that need localization in Vietnam.

The company always publishes information on the website publicly, Vietnamese suppliers currently only stop at plastic components and some simple components. Through this event, we hope to find new suppliers in Canon's global supply chain ”- Ms. Dao Thi Thu Huyen said.
According to Mr. Nguyen Anh Tuan - Head of Strategy Support, Samsung Vietnam Complex, Samsung is open and has a fair competitive environment for its partners. The competitiveness of enterprises is the price and quality of products. However, according to Mr. Nguyen Anh Tuan, changing production lines and technology is one of the major challenges for Vietnamese businesses when participating in the global supply chain.

"Once we have determined to supply electronic components to Samsung, we must change our minds and improve our production capacity," said Nguyen Anh Tuan.

The situation that Vietnamese enterprises are difficult to participate in global supply chains takes place not only in the field of manufacturing electronic components but also in many other areas such as automobiles, motorcycles, textiles, agriculture. ...

Hesitation will hinder success

Recognizing that the level of participation in production networks and global value chains of Vietnamese enterprises is very limited, Minister of Planning and Investment Nguyen Chi Dung said that there are two major reasons for this.

Firstly, FDI enterprises often have available ecosystems and closed chains, so it is difficult for Vietnamese enterprises to "get in the way". Secondly, Vietnamese enterprises themselves are small scale and limited resources, so it is difficult to meet the strict requirements of large customers.

In particular, "sometimes businesses are still afraid, do not dare to take risks to invest in upgrading standards, so they can not take breakthrough steps" - Minister Nguyen Chi Dung said.

Although it has become a "link" in the supply chain of Panasonic, Mr. Le Canh Duong - General Director of VPMS admitted, when meeting large orders from large corporations, Vietnamese businesses are often afraid. . Businesses will have to calm down to handle step by step the requirements of the purchaser.

Ms. Hoang Thu Thuy - Deputy General Director of Global Purchasing Division, Panasonic Vietnam said that FDI enterprises are very active and want to cooperate with Vietnamese enterprises, the criteria for selecting partners are also clear. Obviously, as long as Vietnamese enterprises can meet and confidently prove to the shoppers that they are capable, they can join the chain.

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