The rising demand of foreign direct investment enterprises for rawmaterials has given local companies the chance to become suppliers, butthey must be more active in the race.
According to the VietnamAssociation of Foreign-Invested Enterprises, Samsung Vietnam, theelectronic giant from the Republic of Korea with an approximately 6.8billion USD investment in the country, was expected to meet with around100 Vietnamese companies next week to work on raw material supplies,after having recently got approval to develop a 1 billion USD plant inthe Samsung Bac Ninh Hi-Tech Complex.
The association's vicepresident Nguyen Van Toan said to Dau Tu (Investment) newspaper thatSamsung Vietnam would place their demands and requirements for localcompanies wishing to become its suppliers.
He said that Samsungwould also provide support to Vietnamese companies in meeting thestandards set by FDI enterprises and engaging in the supply chain.
If successful, local companies would benefit a lot from becoming a link in Samsung's value chain, Toan said.
Contributing23.9 billion USD to Vietnam's total exports, which accounted for 18percent of its total exports, the Korean phone producer's active move inincreasing the local procurement rate would give a boost to thedevelopment of the support industry and Vietnamese small andmedium-sized enterprises. The current local procurement of Samsung was30 percent.
However, amid the rising FDI inflow in the supportindustry, whether local companies could grab the opportunity to becomeraw material suppliers remained a difficult question.
In thegarment and textile industry, for example, Vietnam witnessed a risingwave of foreign investment ahead of the Trans-Pacific PartnershipAgreement even as local companies were still confused by a series ofstandards, Tran Huu Huynh, from the Vietnam Chamber of Commerce andIndustry was quoted as saying, by the newspaper.
According tothe Japan External Trade Organisation survey in March, the localisationrate of Japanese enterprises in Vietnam was 32.2 percent in 2013, up 4.3percentage points over the previous year.
However, the rate was low compared to 64 percent in China, 53 in Thailand, 42 in Malaysia and 41 in Indonesia.-VNA
According to the VietnamAssociation of Foreign-Invested Enterprises, Samsung Vietnam, theelectronic giant from the Republic of Korea with an approximately 6.8billion USD investment in the country, was expected to meet with around100 Vietnamese companies next week to work on raw material supplies,after having recently got approval to develop a 1 billion USD plant inthe Samsung Bac Ninh Hi-Tech Complex.
The association's vicepresident Nguyen Van Toan said to Dau Tu (Investment) newspaper thatSamsung Vietnam would place their demands and requirements for localcompanies wishing to become its suppliers.
He said that Samsungwould also provide support to Vietnamese companies in meeting thestandards set by FDI enterprises and engaging in the supply chain.
If successful, local companies would benefit a lot from becoming a link in Samsung's value chain, Toan said.
Contributing23.9 billion USD to Vietnam's total exports, which accounted for 18percent of its total exports, the Korean phone producer's active move inincreasing the local procurement rate would give a boost to thedevelopment of the support industry and Vietnamese small andmedium-sized enterprises. The current local procurement of Samsung was30 percent.
However, amid the rising FDI inflow in the supportindustry, whether local companies could grab the opportunity to becomeraw material suppliers remained a difficult question.
In thegarment and textile industry, for example, Vietnam witnessed a risingwave of foreign investment ahead of the Trans-Pacific PartnershipAgreement even as local companies were still confused by a series ofstandards, Tran Huu Huynh, from the Vietnam Chamber of Commerce andIndustry was quoted as saying, by the newspaper.
According tothe Japan External Trade Organisation survey in March, the localisationrate of Japanese enterprises in Vietnam was 32.2 percent in 2013, up 4.3percentage points over the previous year.
However, the rate was low compared to 64 percent in China, 53 in Thailand, 42 in Malaysia and 41 in Indonesia.-VNA
