Samsung Electronics’ local suppliers has started to reach out to new businesses following their relationship with the South Korean-based technology company, Nekkei Asian Review reports.
Ten years after the multinational conglomerate confirmed it will produce smartphones in Vietnam, there has been a meteoric rise in companies supplying to Samsung’s biggest phone production hub.
From four in 2014 to 29 in 2018, the figures are anticipated to increase even further to 50 by 2020.
The companies are extending their reach to new industries such as automobiles and exploiting the technological prowess that the South-Korean giants created to shape a local supply chain.
It was confirmed that one vital supplier, Meiko Electronics, opted to spend over $100mn to enhance facilities at its Hanoi premises.
The firm focuses on printed circuit boards which enable smartphone parts to be mounted and its investment was one of the Japan-based company’s biggest purchases.
Since production started in 2011, Meiko aims to utilise its experience gained to use production technology similar to that of semiconductors.
This will be used to produce circuit boards with wires just 30 micrometers wide at its new facility.
Shuji Ida, factory director of Meiko Electronics Vietnam said: “Vietnamese workers stay at their jobs more than in other countries like China, and technological skills are improving.”
It is expected that Samsung employs approximately 160,000 people in Vietnam, with over 200mn a year smartphones produced globally, including its latest top device, the Galaxy S9.