Minh Nguyen strategic deal geared towards Samsung

On March 2, Korean plastic injection moulding machine manufacturer Woojin Plaimm and Minh Nguyen Supporting Industries Joint Stock Company (Minh Nguyen) signed a comprehensive strategic cooperation agreement to manufacture components for Samsung Electronics HCMC CE Complex in Saigon Hi-tech Park (SHTP) in particular and multinational corporations in general.

Accordingly, Woojin Plaimm will supply machines and maintenance services for Minh Nguyen’s Phuoc Thanh high-tech research, application and production complex in SHTP.
Woojin Plaimm will undertake to support the training of machine operators in the country to enhance productivity.

“The Vietnamese supporting industries have ample opportunities to develop as several large foreign groups, such as Canon, Samsung, Huyndai, Nokia, Toyota, and LG, plan to increase localisation rates in the country. However, few Vietnamese enterprises can adapt to these foreign groups’ requirements due to their low management capacity and lack of technology. Vietnamese enterprises manufacture almost exclusively packaging and simple spare parts, leaving the more sophisticated services to their foreign counterparts,” said Le Hoai Quoc, head of SHTP’s management board.

“Thus, increasing cooperation with foreign enterprises in high-tech supporting industries will enable Vietnamese enterprises to enhance their management and competitive capacities,” he added.

Quoc noted that, to date, Minh Nguyen was considered the only first-tier Vietnamese supplier for Samsung HCMC CE Complex in SHTP.

Covering an area of four hectares, Minh Nguyen’s $71 million complex has a designed annual capacity of 20 million products, including plastic and metal electronic components as well as moulds for the plastic industry. The complex’s machines will be imported with a 70 per cent automation rate. The complex, which is expected to come into operation in the second quarter of 2016, will create 1,000 jobs.

As of now, there are four Vietnamese first-tier suppliers that can adopt Samsung’s strict requirements on quality, namely Viet Hung Packaging Company Limited, Thang Long Packing Import-Export and Production JSC, TDBH Pattern Manufacture Mechanical Commercial Co., Ltd., and Thanh Long Electronic Production JSC.

Apart from these four, Samsung currently has 28 other partners listed as second-tier suppliers.