Recently, the Industry Agency under the Ministry of Industry and Trade (MoIT) and Samsung Electronics Vietnam Co., Ltd. continued their joint implementation of a program aimed at identifying and supporting high-potential Vietnamese enterprises to integrate more deeply into global supply chains.

This flagship initiative is a key component of Vietnam’s supporting industry development strategy, focusing on enhancing domestic firms’ competitiveness, boosting localization, strengthening manufacturing capacity, and promoting sustainable industrial growth.

The smart factories development project has brought many positive changes to Vietnamese businesses. (Photo: Samsung Vietnam)

Smart factory support project driving tangible improvements

Launched in 2015, the collaborative program between the MoIT and Samsung Vietnam has yielded significant and lasting results. By the end of 2024, over 400 Vietnamese enterprises had undergone assessments and received consultancy to improve their production systems according to international standards.

Notably, 63 of these companies became Tier-1 and Tier-2 suppliers in Samsung’s global manufacturing chain—an important milestone reflecting the domestic firms’ capabilities in production, management, and product quality.

Participating businesses have reported remarkable improvements, with productivity gains ranging from 30% to 50%, significant reductions in defect rates, and gradual adoption of global quality and environmental management standards such as ISO and IATF. In addition to Samsung, many of these enterprises have expanded cooperation with other multinational corporations in the electronics, mechanical engineering, components, and packaging sectors.

To ensure the program’s effectiveness, the Industry Agency and Samsung Vietnam apply strict yet practical criteria to select participating enterprises.

Priority is given to firms operating in key supporting industries such as electronic components, technical plastics, precision engineering, mold manufacturing, surface treatment, and industrial packaging. Eligible enterprises must already operate stable production facilities with machinery and production lines that show potential for scaling.

Product quality must meet—or show potential to meet—technical standards and output control requirements of foreign direct investment enterprises. Moreover, participating businesses must demonstrate a clear commitment to continuous improvement, as well as a readiness to adopt technical and managerial assistance and embrace technology transfer.

Crucially, the program emphasizes sustainable, long-term engagement. Selected enterprises not only receive short-term training, but also benefit from in-depth consultancy and hands-on production improvement work conducted directly at their factories. Depending on the enterprise’s capacity and development needs, this support can last between three to six months.

According to the Industry Agency, support activities include consulting on production optimization using Lean, 5S, Kaizen, and TPM models; upgrading technologies and measurement and quality control systems; providing specialized training for technical staff, managers, and production leaders; as well as facilitating supply chain connections and offering long-term strategic advice to help enterprises thrive in international markets.

Accelerating local enterprises’ entry into global supply chains

A representative from the Industry Agency emphasized that improving the capabilities of domestic enterprises is essential to reducing the trade deficit, increasing value-added production within Vietnam, and enhancing the country’s standing in global manufacturing networks.

Tran Manh Ha, Head of the Supporting Industries Division at the Industry Agency, noted that the MoIT is currently working closely with Samsung Vietnam to implement several projects in the supporting industry sector. These include a program to train Vietnamese consultants in production and quality improvement, a mold-making workforce training program, an enterprise improvement consulting initiative, a new supplier scouting campaign, and the Smart Factory Development Program.

According to Ha, these programs have already achieved encouraging results, helping Vietnamese businesses improve their performance and gradually become more deeply involved in Samsung’s global production chain.

The partnership between the Industry Agency and Samsung Vietnam stands out as a model of public-private cooperation, clearly demonstrating its effectiveness in promoting the development of Vietnam’s supporting industries. This partnership is also a key pillar in the national industrial development strategy through 2030, with a vision to 2045—especially as Vietnam seeks to capture a greater share of the shifting global supply chain landscape.

At present, the Industry Agency is reviewing and selecting suitable Vietnamese supporting industry enterprises for participation in the Smart Factory Development Project. The focus is on identifying businesses capable of supplying four key types of mobile phone components and product parts to Samsung Vietnam.

The goal is to support these enterprises in upgrading their management capacity, technical skills, and production systems through digital transformation and workforce development. Additionally, the program aims to strengthen ties between Samsung and local firms, increase the rate of localization, and help Vietnamese businesses gain a stronger foothold in global supply chains.