From supplier support to smart factories

The presence of multinational corporations creates substantial demand for components, equipment, materials and technical services, opening up new markets for local businesses.

Pham Van Thinh, Member of the Standing Board of the Bac Ninh Municipal Party Committee and Vice Chairman of the municipal People’s Committee, visits An Lap Plastics Co., Ltd.’s factory producing components for Samsung Vietnam.

However, Vietnamese suppliers must meet increasingly demanding requirements for quality, productivity, delivery schedules and modern management to turn these opportunities into actual orders.

This has been the focus of a cooperation programme between the Ministry of Industry and Trade, the former Bac Ninh provincial People's Committee and Samsung Vietnam, launched in 2020.

Initially focused on improving production processes, management capacity and supplier development, the programme has gradually expanded to help businesses establish smart factories.

An Lap Plastics Co., Ltd., located in Dai Dong-Hoan Son Industrial Park, is one example.

Dang Quang Khoi, the company's director, said Samsung Vietnam had supported the company in implementing an integrated system connecting production, warehousing, quality control and equipment.

Following the improvements, the factory's smart manufacturing level rose from 1.7 to 2.8, while the production plan completion rate increased from 80% to 92%. The defect rate fell sharply from 12% to 0.5%.

More importantly, the upgrades enabled An Lap Plastics to cooperate with Samsung Vietnam in manufacturing and join its component supply chain.

Kim Tea Hoon, Deputy General Director in charge of the purchasing centre at Samsung Vietnam, said the company had spent more than a decade improving manufacturing capacity, product quality, systems development and specialist training.

Businesses participating in Samsung's support programmes had also been given opportunities to enter its supply chain, he said.

Students from Bac Giang Vietnam-Korea College of Technology study in a modern practical training room at the SIC Lab Talent Development Centre.

The approach marks a shift from simply identifying potential suppliers to working directly with businesses to improve their capabilities.

Rather than merely introducing Vietnamese companies to buyers, the programmes help them streamline processes, digitise operations, automate production and standardise manufacturing practices.

Foreign investors help train high-tech workers

Foreign-invested enterprises are also playing a growing role in developing the workforce needed by high-tech industries, extending their involvement beyond production technology and management.

In April 2026, Samsung Vietnam, through its Samsung Innovation Campus programme, supported Vietnam Korea Bac Giang College of Technology in establishing the SIC Lab Talent Development Centre.

Covering 725 square metres, the centre includes SIC classrooms, a STEM laboratory, extended and virtual reality (XR/VR) training facilities, and a simulated semiconductor assembly area.

The facility provides more than modern infrastructure. It offers students opportunities to gain practical experience with virtual environments and advanced technologies, helping them become familiar with international industry standards.

Closer cooperation between businesses and educational institutions is expected to help bridge the gap between classroom learning and the practical requirements of high-tech manufacturing.

Another important development in Bac Ninh's supporting industries has been the increasingly prominent role of government agencies in connecting domestic suppliers with major manufacturers.

Since 2020, the city's Department of Industry and Trade has worked with relevant organisations to collect Samsung's demand for components, products and services and match those requirements with local businesses. It has also developed a database of supporting-industry companies.

By the end of 2023, 39 Vietnamese businesses in Bac Ninh had joined Samsung's supply chain, reflecting the impact of efforts to connect local suppliers with multinational manufacturers.

An overview of Quang Chau Industrial Park.

The challenge, however, extends beyond introducing businesses to potential customers.

Authorities must understand the procurement needs of major manufacturers, assess the capabilities of domestic suppliers and create conditions for the two sides to establish effective partnerships.

These efforts provide a foundation for Bac Ninh to move away from a traditional approach centred on supporting businesses towards one focused on working with them to strengthen their capabilities.

When government agencies effectively facilitate cooperation, foreign-invested enterprises actively develop local suppliers, educational institutions tailor training to real-world demand and Vietnamese companies invest in technology and raise their standards, individual partnerships can gradually develop into a broader industrial ecosystem.

Such an ecosystem could help domestic businesses improve competitiveness, participate more deeply in global production networks and capture greater value from the presence of multinational manufacturers in Vietnam.

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