Outsourcing activities in Vietnam - The case of Samsung
Transcript of Outsourcing activities in Vietnam - The case of Samsung
Outsourcing activitiesin Vietnam
Phạm Ngọc Quỳnh Như - BABAIU11131Nguyễn Minh Vân - BABAIU10271Trần Thị Uyển Nhi - BABAIU11151
Contents
References
Benefits, chances and challenges to Vietnam
Why Samsung choose Vietnam?
Outsourcing activities in Vietnam
Introduction
I. Introduction
Samsung Group Founded in 1938
Exporter of dried fish, vegetables, and fruits Flour mill and confectionery machines
1950’s Economic Stabilization Korean War - Samsung lost all assets Aimed to help rebuild Korean economy; entered the
manufacturing industry (sugar, fabrics) Became a leader in modern business practices (recruiting from
outside) 1960’s Expansion of Key Industries
Entered electronics and chemical industries 1969 established Samsung Electronics Co.
I. Introduction
% of Sales ($72B)
Electronics28%
Machinery & Heavy
Equipment6%
Chemicals2%
Financial Services
26%
Other38%
• Distribution• Hotels• Amusement
theme parks• Trading• Construction• Textile• Advertising• Baseball team• Security
• Cameras• Aircraft• Ships• Dump trucks• Oil trucks
• Polymerized compounds• Plastics• Specialty chemicals
• Life insurance• Credit card services• Securities trading• Finance and trust
management services
• Home appliances• Wireless
communication• Semiconductors
I. Introduction
Samsung Electronics
HOME APPLIANCES
MOBILE
TABLETS
TELEVISIONS
DIGITAL IMAGING
COMPUTERS
HOME AUDIO
II. Outsourcing in Vietnam
• 2009: Samsung opened the first smartphone plant in Bac Ninh, Vietnam
• 2013: The second plant was opened in Thai Nguyen, Vietnam
II. Outsourcing in Vietnam
Investment: US$11.2 billion Samsung Electronics: US$8.9 billion Samsung Electro Mechanics: US$1.23 billion Samsung Display Project: US$1 billion R&D Center Project
III. Reasons
Why Samsung shift to Vietnam?
III. Reasons
1. Competition
III. Reasons
2. Labor force
III. Reasons
3. Government's policies
III. Reasons
4. Geographical location
III. Reasons
Difficulties
1. Lack of local suppliers
2. Lack of employees’
commitment
3. Poor ethics from employees.
IV. Benefits, chances and challenges
Benefits- Job creation
- Contributing to national export turnover and budget
- Attracting more investments from the hi-tech electronics firms
- Attracting foreign part suppliers and
using local suppliers
- Helping Vietnam in moving from low-
value-added FDI to high-value-added
manufacturing projects
IV. Benefits, chances and challenges
Chances and challenges - Turn Bac Ninh into an Agglomeration
- Support industries needed
- Risk of transfer pricing for tax avoidance
- Slow tech transfer
- Labor exploitation
IV. Benefits, chances and challenges
Lessons for Vietnam- Improve tax policies to prevent tax avoidance.
- Focus more on education to have the next generation who will
be able to have vision and ability to adopt and develop new
technologies and catch up with the world.
V. References
• http://dantri.com.vn/kinh-doanh/sep-samsung-viet-nam-noi-ve-diem-yeu-nhan-luc-viet-nam-1000107.htm
• http://ipc.danang.gov.vn/en/web/ipc-english/-/samsung-vietnam-prioritizes-local-part-suppliers-but-few-qualify
• http://tuoitrenews.vn/business/23343/vietnam-firms-left-behind-in-race-to-supply-parts-to-samsung-report
• http://vietnamnet.vn/vn/kinh-te/173574/samsung-phat-khiep-khi-nguoi-viet-an-cap-tien-ty.html
• http://vnreview.vn/goc-nhin-vnreview/-/view_content/content/1344844/vi-sao-cong-nhan-nha-may-samsung-nhan-luong-chuc-trieu
• http://cafef.vn/doanh-nghiep/quy-mo-dau-tu-cua-samsung-tai-viet-nam-trong-tuong-lai-se-con-tang-hon-nua-2014112017115415717ca36.chn
• http://dddn.com.vn/thi-truong/vi-sao-cac-dai-gia-cong-nghe-chon-viet-nam-20140904022328134.htm
Click to edit company slogan .