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Tighter Ties Between Multinationals and Local Suppliers: What It Means for Vietnamese Companies and Workers
Business · B1 · 2 min read

Tighter Ties Between Multinationals and Local Suppliers: What It Means for Vietnamese Companies and Workers

Siết chặt liên kết doanh nghiệp FDI và nhà cung cấp nội địa: Cơ hội và thách thức

Source: Vietnamnet

Vietnam is working to link foreign‑invested enterprises with domestic suppliers, a move that could reshape opportunities for Vietnamese businesses and workers. Understanding these changes helps companies prepare for new demands and benefits.

The article notes that Vietnam’s localisation rate in foreign‑invested production chains stands at only around 20‑25%, which limits technology spillovers to local firms. This low share means many domestic companies still focus on basic processing rather than higher‑value components.

Deputy Director Bui Thu Thuy of the Foreign Investment Agency says the government is drafting a revision of the Law on Investment to create incentives for technology transfer and the development of local suppliers. The draft aims to reward projects that commit to these goals, encouraging stronger foreign‑domestic links.

Cha Ji Ho, Deputy General Director of Samsung Vietnam’s Procurement Centre, explains that Samsung is expanding consultancy programmes on smart factories and smart moulds, and is providing training for specialists at Vietnamese partner companies. These programmes are meant to raise the production capacity of domestic supporting‑industry enterprises.

Jackson Woo, Managing Director of SGS Vietnam, warns that even after training and international certification, domestic firms may still face staff turnover and difficulty maintaining consistent quality. Experts add that developing supporting industries also requires coordinated policies, financial support, easier import procedures, and skill development to meet international standards.

In short, tighter supply‑chain links can bring new technology and training, but Vietnamese companies must improve workforce stability and meet higher quality standards to fully benefit. Coordinated government action and multinational support are key to turning these opportunities into lasting growth.

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