Supplying core components

YETHAN Vietnam Energy Technology Co., Ltd., based in Thuan Thanh II Industrial Park, is a Chinese-invested manufacturer of generators. The firm is part of Sumec Group, a diversified Chinese conglomerate active in electric machinery, textiles, fashion, trade and shipbuilding, with a distribution network spanning over 100 countries.

Hana Micron, a leading semiconductor manufacturer in Bac Ninh province

General Director Xu Gang said the Bac Ninh plant started operations recently with one production line, creating nearly 100 jobs. Most processes rely on robots to reduce labor costs.

Before investing, the company reviewed local administrative procedures and assessed the capabilities of domestic firms. This led to a partnership with Aomaga Vietnam Technical Copper Co., Ltd., based in Tien Son Industrial Park, which also operates branches in neighboring provinces.

Aomaga supplies copper components used in generators—critical parts that determine performance. The company also designed and built YETHAN’s factory on order, allowing production to start quickly.

“It took us just five months from investment approval to the first product. That was possible thanks to strong support from Bac Ninh authorities and capable local partners,” Xu said. YETHAN is now seeking more domestic collaborators, targeting a localization rate of at least 60%.

In recent years, Bac Ninh has emerged as one of Vietnam’s top FDI destinations and an industrial hub of the north. Global technology groups including Hana Micron, Foxconn, Luxshare-ICT, JA Solar and Samsung have expanded their presence.

Local firms are joining supply chains by offering essential services such as recruitment, catering, logistics, packaging, electronics parts and hospitality. Some companies have started investing in technology upgrades and long-term business strategies to strengthen ties with FDI partners.

Still, firms capable of supplying high-tech core products like Aomaga remain rare. Industry experts say this gap underscores the need for policies to help more domestic firms move beyond peripheral roles.

Suitable measures and incentives

The success of Aomaga shows that Vietnamese enterprises can meet foreign firms’ demands. To foster stronger connections, the provincial business association is urged to draft a dedicated linkage program. Authorities could assign a lead agency to oversee implementation, conduct regular evaluations and adjust policies when needed.

At the national level, experts recommend revising regulations to encourage FDI firms to purchase goods and services from domestic suppliers. Over the long term, Vietnam could apply localization targets in priority sectors, requiring major FDI projects to outline plans for domestic sourcing at the approval stage.

For local companies, awareness of the importance of linking with foreign investors is crucial. To grow sustainably and profitably, they must enter FDI value chains, both regionally and globally. Businesses should actively identify FDI demand through seminars, business-matching events and official information channels, while investing in technology and product quality to meet international standards.

Analysts say Vietnamese firms should not limit themselves to supplying within the province but expand to serve FDI customers nationwide and abroad. Only then can they be considered part of regional and global supply networks.

Effective connections between local and foreign enterprises not only raise productivity and product quality but also generate synergy for the wider economy.

To support this, Bac Ninh has recently approved the establishment of the Provincial Industrial Manufacturing Association. Its mission is to guide the business community amid deeper integration. Core activities include connecting and developing members, engaging in policy dialogue, promoting trade and investment, and building international partnerships.

The province aims for Bac Ninh companies to become fully embedded in global value chains by 2030, strengthening competitiveness and securing long-term growth.

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