Samsung searches for Vietnam suppliers


Samsung is willing to partner with local part suppliers but there are in fact few qualified businesses. The South Korean electronics firm will prioritize placing orders at local businesses if they are able to meet three standards: product quality, delivery time, and price.

The localization rate – the amount of materials and parts that can be sourced locally – at the Samsung facility remains at around 39%. But this figure mostly represents the foreign direct investment (FDI) suppliers, while there are very few 100 percent Vietnamese businesses supplying parts to Samsung. Read more

FAQ: How can I find a list of U.S “Process Verified” suppliers of meats and poultry?

Question: Do you know who is importing frozen chicken drum sticks? Or should I contact the US Deptartment of Agriculture? My client  is interested in purchasing direct from a U.S. supplier.  Or, if there is an importer/distributor that has established relationships with U.S. suppliers, maybe that would be more efficient. Do you have a list of importers/distributors of USA poultry? Read more

TPP: Walmart targets Vietnam as good product source


Walmart sources clothing and footwear, entertainment, furniture, home decor items, home appliances, toys and seasonal goods. The office employs 20 people and has relationships with numerous suppliers in Vietnam.

Walmart Global Sourcing vice president Bill Foudy said that after the establishment of a sourcing office in Ho Chi Minh City in June last year, “Walmart has been seeking opportunities to purchase goods in Vietnam to export to overseas markets under the upcoming Trans-Pacific Partnership Agreement (TPP).” Read more

ADB to provide $50 million loan to support SMEs in Vietnam Asian Development Bank (ADB) and the Vietnamese Government signed an agreement on November 22 providing a 50 million USD concessional loan for fostering the development and competitiveness of small and medium-sized enterprises (SMEs) in Vietnam.

“While the Government made great efforts to enhance policy reforms to support the creation, survival and growth of SMEs, more needs to be done to foster a greater scale of SME development essentially required for the country to achieve more sustainable and inclusive growth,” said ADB Country Director for Vietnam Tomoyuki Kimura. Read more

Chip production plant investment is a must: Le Manh Ha, Vice Chairman

Le Manh Ha, Vice ChairmanThe Saigon Times Daily spoke with Le Manh Ha, vice chairman of HCMC and head of the city’s steering committee for the 2013-2020 chip development program, over the need to invest in chip manufacturing factories in the city. Excerpts:

“Investment in many factories will result in  a revolution in the industry as chips are necessary for any electronic devices. The chip is the most important part. If we don’t invest in design and production, we will only provide assembling and outsourcing services forever. These activities will collapse sooner or later.

“It is normal to set up technical barriers. For State-owned enterprises, it is possible to ask them to use locally-made chips for security reasons.” Read more

TPP: competition, technical standards could prove difficult for Vietnam

TPP - Thanh Nien NewsThe TPP trade pact that will include Vietnam is expected to be wrapped up this year. And U.S. import tariffs, the biggest market for Vietnam’s leading export, textiles and apparel, will be cut from 17-32 percent now to zero. But Vietnamese firms are unsure if they will benefit. Many are anxious since foreign investors with deep pockets are planning to set up operations in the country to take advantage of the lowering of import taxes by many large economies that will sign up for the trade deal. Many textile and garment companies in the region have already begun to move to Vietnam. Read more

Weak support industry in Vietnam adds little value to FDI products

Samsung workerThe benefits of foreign direct investment (FDI) in Vietnam have been limited by an ailing local support industry that fails to add value to products.

Hirotaka Yasuzumi, managing director of the Japan External Trade Organization (JETRO), said Japanese firms, Vietnam’s biggest investors in the first half of the year, find it difficult to expand their business in the country where the use of locally made parts is less than 30 percent. The number is 53 percent for Thailand and 60 percent for China. Read more

Localization rate in Vietnam manufacturing under 30%

Samsung Vietnam uses Korean suppliersJapan as the single biggest foreign investor in Vietnam says the local contents at Japanese-invested manufacturers here is smaller than 30%, which is the lowest in the region, the Japan External Trade Organization (JETRO) said.

Local input materials and components for Japanese enterprises in Vietnam is only 27.8%, far lower than that in Indonesia (43%), Thailand (53%) and China (61%), according to JETRO.

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