Business

Vietnamese emerge as key players in Samsung's global supply chain

By Ngoc Han August 21, 2024 | 08:29 AM GMT+7

Samsung Electronics’ factories in Vietnam have become a cornerstone of the company's global production network, manufacturing over half of its worldwide mobile devices and critical components.

The transformation of the landscape in Thai Nguyen province, from tea fields to a major mobile production hub, marks Samsung's remarkable growth in Vietnam.

According to Park Sung Ho, General Director of Samsung Electronics Vietnam (SEVT) and Samsung Electronics Vietnam - Bac Ninh (SEV), Samsung has produced nearly 6.3 billion mobile phones globally since 1988.

In contrast, the SEVT plant alone in Thai Nguyen has produced over 1 billion devices in a much shorter period. Combined, the two plants in Bac Ninh and Thai Nguyen provinces have produced a total of 1.9 billion devices.

Samsung's first mobile phone production plant in Vietnam was established in Bac Ninh province in 2008, followed by a second plant in Thai Nguyen province in 2013.

In 2023, Samsung contributed over $55.7 billion to Vietnam's export revenue, solidifying its position as the largest foreign investor in the country with a total cumulative investment of $22.8 billion by the end of 2023.

Vietnam serves as a key base for both manufacturing and research and development for Samsung. The latest and most advanced products from Samsung, including the newly launched Galaxy Z Fold 6 and Galaxy Z Flip 6, were manufactured at SEV in Bac Ninh and SEVT in Thai Nguyen.

At SEVT, a dedicated production line for the Galaxy Z Flip underscores the plant's importance, while Bac Ninh serves as the hub for the Galaxy Fold series. Duong Ngoc Duy, head of SEVT's Production Department, noted the meticulous preparation involved in ensuring the production of the Galaxy Z Flip 6 met the highest quality standards.

In recent years, SEVT has moved from reliance on foreign experts to mastering advanced technology independently. According to Duy, the parent company in South Korea now fully trusts SEVT to manufacture strategic high-end models, including products for markets like South Korea, Japan and even partnerships with luxury brands such as Thom Browne and Maison.

Samsung Vietnam's plants also produce essential components, including all-metal phone casings, a task previously shared with other facilities. The exclusive FTG process in Vietnam ensures that all glass requirements for Samsung products are met domestically.

Samsung Vietnam has been able to produce high-end devices. Photo at the courtesy of Samsung Vietnam

According to Park, Samsung's "all in one" production model in Vietnam is unique globally, allowing the company to control everything from the smallest components to the finished product. In 2022, this capability enabled Samsung to complete the production of the Galaxy S22 in just three months.

These achievements highlight Vietnam's strategic role in Samsung's global production network, where Vietnamese workers have played a crucial role in creating top-tier Samsung products, including the Galaxy Z Fold 6 and Galaxy Z Flip 6, contributing significantly to Vietnam's socio-economic development.

"We build our culture based on the slogan: Trust - Sincerity - Creativity," said Park. "Our motto, 'Dreams Come True,' embodies the realization of individual and collective dreams, Samsung's aspirations, and our commitment to contributing positively to Vietnamese society."

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