This is the first time Samsung has sent outstanding workers from SEV Bac Ninh and SEVT Thai Nguyen to Unpacked 2018 where the duo flagship phones were launched.
SEV Bac Ninh and SEVT Thai Nguyen produce more than 50 percent of total Galaxy S9 and S9+ output worldwide.
However, a question has been raised about the exact percentage of S9 and S9+ made in Vietnam. In 2008, Samsung set up the first large-scale manufacturing factory Vietnam as part of its plan to turn the country into a global production base.
Samsung has poured $17 billion into projects in Vietnam, generating 160,000 jobs.
In 2017, Samsung’s export turnover reached $54 billion, making up more than 20 percent of Vietnam’s total export turnover.
Analysts, citing the figures, have warned that Vietnam’s economy is heavily reliant on Samsung’s production complexes. They also have cast doubt on the value Samsung brings to Vietnam’s economy if the company enjoys big tax incentives.
Debate continues about whether to consider Samsung’s products made at its factories in Vietnam as ‘made in Vietnam products’ if the locally made content remains modest.
Most of the input components to make finished products are from other countries, while the added value created in Vietnam remains modest.
The latest report shows that locally-made content ratio in Samsung’s products in Vietnam increased from 35 percent in 2014 to 57 percent in 2017.
The localization ratio is based on the value created in Vietnam compared to the total value of products. The ‘value created in Vietnam’ includes labor costs and components provided by Vietnamese and foreign-invested enterprises in Vietnam.
The problem is the low number of Vietnamese component suppliers. Of 201 domestic component suppliers in 2017, there were 23 first-class vendors and 178 second-class vendors (which provide products to Samsung through first-class vendors)
Some countries have asked multinationals to use the phrase ‘made-in’ for products that contain input components that are mostly from their own countries, and to use the phrase ‘assembled in’ for products that contain mostly imported input components.
Multinationals tend to clearly identify such indicators, as the companies can benefit if products are assembled in developing countries. They also include other indicators such as ‘designed in’ , next to ‘made in’ or ‘assembled in’.