Competitiveness, the “key” for businesses to participate in the global supply chain

Through in-depth and systematic consulting activities, businesses have been trained and equipped with the capacity to implement continuous improvement activities. This competitive capacity has helped many businesses open up opportunities to participate in the global supply chain…
The Ministry of Industry and Trade, Samsung and businesses signed an agreement to provide consulting support for businesses in Bac Ninh to participate in the smart factory development project in 2024.

On June 26, 2024, Samsung Vietnam coordinated with the Ministry of Industry and Trade and Bac Ninh province to organize a preliminary ceremony after 3 years of implementing the memorandum of understanding on the project to support Vietnamese businesses in Bac Ninh province, and at the same time launched the 2024 smart factory development cooperation program for businesses in Bac Ninh.

The Vietnamese Enterprise Support Project in Bac Ninh Province started in September 2020 and is expected to last until 2025, including two main contents: the Enterprise Improvement Consulting Program and the Supplier Development Program. After 3 years of implementation, the project has achieved many impressive results.

Delegates visit the product display area of ​​enterprises

The innovation consulting program implemented from 2020 – 2021 has mobilized the enthusiastic participation of 7 enterprises in the province. Participating in the program, Vietnamese enterprises have access to scientific production organization methods, are directly supported in building a quality management system on site, and are trained for key staff in the factory on how to improve, enhance quality as well as the ability to expand production, thereby helping enterprises improve their competitiveness and have more opportunities to connect more deeply into the global value chain.

In addition, from 2022 to present, the smart factory development program has been carried out in 12 enterprises in Bac Ninh province. After the improvement, most of the participating enterprises have moved from level 1 to level 2, level 3 (in Samsung’s 5-level smart factory scale).

Production data collection has been partly shifted from local collection, slow updates by day or week to continuous management, real-time updates, ensuring that information is redesigned in a stream and transparently, helping management and decision making to be more accurate and faster.

Samsung also strives to implement a supplier development program in Bac Ninh. Up to now, 39 Vietnamese enterprises including tier 1 suppliers, tier 2 suppliers, and consumable service providers in Bac Ninh have participated in Samsung’s supply chain.

Looking back at the significance of the cooperation achievements over the past 3 years, Mr. Kim Tea Hoon, Deputy General Director in charge of Samsung Vietnam Purchasing Center, said that many excellent enterprises in the province have received Samsung’s “50 years of manufacturing experience” through in-depth and systematic consulting activities. In addition, consultants have been trained and equipped with the capacity to implement continuous improvement activities.

“I believe that this competitiveness has helped many enterprises open up opportunities to participate in the global supply chain. With the business philosophy of “Co-prosperity”, Samsung Vietnam is committed to continuously transferring experience to help enterprises in Bac Ninh province have the capacity to compete to meet global standards”, said Mr. Kim Tea Hoon.

Representing one of the enterprises participating in the project, Mr. Nguyen Xuan Dung, Deputy General Director of Tran Thanh Company Limited, shared: “The application of information technology and real-time data collection for analysis, use and decision making has brought great efficiency to our company. In addition to the immediate reduction in financial costs, the shortening of operating time in business, production and warehousing stages also brings us great value. Samsung’s consulting program has provided practical support for Vietnamese enterprises to improve management capacity, increase productivity/quality and gradually approach advanced management standards in the world”.

Also at the event, Samsung Vietnam continued to launch the Smart Factory Development Cooperation Program in 2024 for enterprises in Bac Ninh. The program will be implemented from May 7 to August 9, 2024, at 5 enterprises in Bac Ninh province, including: 03 enterprises participating in the new project, namely Eco Vietnam Joint Stock Company, Kim Sen Industrial Joint Stock Company, Innotek Joint Stock Company and 02 enterprises participating in the expansion project, namely Thang Long Packaging Production and Import-Export Joint Stock Company, Tien Thanh Joint Stock Company.

According to the content signed with these enterprises at the event, the project’s support process includes 3 activities: Selecting supporting enterprises; Consulting support for smart factory development and Management later. Samsung experts will survey, evaluate enterprises and directly advise and work with enterprises to improve the site and create a foundation for process improvement, thereby gradually establishing smart factories.

Finally, based on the results of the site consultation, the experts will continue to support enterprises in building operating systems and

management such as encouraging enterprises to continue to implement improvement activities, periodically checking the level of improvement in the manufacturing/IT sector after the project.

Along with the project to support Vietnamese enterprises in Bac Ninh province, since 2015, the Ministry of Industry and Trade and Samsung have coordinated to implement an improvement consulting program to improve the competitiveness of 379 Vietnamese enterprises. In the period of 2018-2021, the Ministry of Industry and Trade and Samsung have trained 406 consultants on supporting industries in Vietnam.

In addition, recognizing the importance of the mold sector in industrial production, the Ministry of Industry and Trade and Samsung continue to implement the project to train 200 mold technicians from 2021 to present.

Thanks to these programs and activities, the number of Vietnamese tier 1 and tier 2 suppliers in Samsung’s global supply chain increased from 25 enterprises in 2014 to 306 enterprises by the end of 2023.

Source: Dung Hieu – Electronic Magazine