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Overview of Samsung Electronics Vietnam

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0% found this document useful (0 votes)
65 views5 pages

Overview of Samsung Electronics Vietnam

Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Introduction.

Samsung is one of the world's leading electronics companies, specializing in digital devices and
media, semiconductors, memory and system integration solutions...
Currently, Samsung Group is having the project "Samsung Electronics Vietnam Thai Nguyen -
Construction of Samsung Thai Nguyen High-Tech Complex (SEVT) - this is Samsung's second
factory in Vietnam with total initial investment capital." has reached 2 billion USD.
Currently, SamSung Electronics has 9 phone factories located in many countries, including
Vietnam. In Vietnam, there are currently 2 factories located in Bac Ninh: SEV (full name:
SamSung Electronics Vietnam Co., Ltd.) and a factory in Thai Nguyen, SEVT (full name: SamSung
Electronics Thai Nguyen Co., Ltd.).

History.
Samsung Group in Korea designed and built a mobile phone manufacturing factory in Vietnam
in 2008. This is an important milestone, laying the foundation for the growth of other
headquarters of large corporations in other countries. another kingdom. SamSung factory in
Vietnam produces electronic and refrigeration product models according to the company's
processes and standards.
April 2009: SamSung Electronics Vietnam (SEV) project was granted investment certificate and
went into operation with an investment capital of 2.5 billion USD, located in Yen Phong
industrial park, Bac Ninh
2010: Introducing the Galaxy smartphone line using the Android operating system, launching
the first 3D TV line in Vietnam
2012: Launched the first Smart TV line in Vietnam. Leading the smartphone and LED TV market
2014: SamSung Vietnam Electronics Thai Nguyen (SEVT) project received an investment license
and went into operation in Yen Binh industrial park, Thai Nguyen, with a total investment capital
of 5 billion USD
2016: SamSung Vietnam's SEHC (SamSung CE Complex) project with a total investment capital
of 2 billion USD located in Saigon high-tech park officially came into operation.
2017: SamSung Vietnam officially opened the Samsung Enterprise Solution Experience Center
(Executive Briefing Center EBC) and the Research and Development Center (SamSung Ho Chi
Minh Research & Development Center SHRD)
Main products and fields of activity.
Smartphone: SamSung Galaxy, SamSung Galaxy Note series, SamSung Galaxy Tab series
Samsung Computers: PC, Laptop
Smart TV products: Smart TV, Full HD & HD TV, Crystal UHD, 4K TVs, 8K TVs, TV accessories
Audio-visual equipment: Tower speakers, sound bar accessories, sound bars with subwoofers
Household appliances: refrigerators, washing machines, air cleaning equipment, vacuum
cleaners, kitchen appliances…

Competitors and the market.


Samsung's competitor is Apple, which continuously launches advanced product lines that keep
up with consumer trends. This reduces the number of potential Samsung customers. In
addition, low-cost Chinese electronics companies such as Oppo, Vivo, Huawei, and Xiaomi are
also a big challenge to Samsung.
According to the financial report of Samsung Group, in the first half of this year, revenue of 4
factories in Vietnam decreased by 17.1% over the same period, reaching 38,690 billion won
(about 699,000 billion VND) and profit decreased by 11.3%. % down to 2,999 billion won
(54,000 billion VND).
In particular, Samsung Electronics Vietnam Thai Nguyen factory (SEVT) leads in revenue and
profit with respectively reaching 15,346 billion won (more than 277,000 billion VND) and 1,166
billion won (more than 21,000 billion VND).
Company culture and values.
“Orientation for sustainable development; "Implementing global citizen experience, protecting
the environment, bringing economic and social value through advanced products and services"
is the throughout strategy of Samsung company.
Samsung always believes that sustainable development is the factor that creates great values
for people, society and the environment, in addition to tangible contributions to the overall
development of the economy.
Samsung officially launched "Five Business Principles" as a commitment to integrating
community responsibility in parallel with business activities. This is considered a global code of
conduct, related to legal standards, ethics and responsibility to society.
1. First: Comply with the law and ethical standards
2. Second: Maintain a healthy company culture
3. Third: Respect customers, shareholders and staff
4. Fourth: Environmental protection and labor safety
5. Fifth: Responsibility to society

*** TQM - Total Quality Management


TQM is not just a quality improvement method, but an overall management philosophy. It
focuses on the comprehensive participation of all members of the organization in improving
organizational quality and performance.
TQM includes activities such as:
Establish a work environment that encourages participation and creativity from all employees.
Identify and meet customer requirements.
Create robust operational processes to ensure quality.
Carry out continuous testing and evaluation to ensure the effectiveness of quality management
systems.
Principles and tools: TQM principles and tools include:
Committed leadership: Senior management must commit to and promote TQM
implementation.
Involvement of all employees: All employees are involved in quality improvement.
Continuous development: TQM requires a continuous process of improving quality.
Analyzing data: Using data and information to make fact-based decisions.
Benefits: TQM offers many benefits, including:
Enhance customer satisfaction, increase organizational performance and efficiency, reduce
waste and costs, create a positive and creative working environment.
Challenges: Although TQM brings many benefits, it also faces some challenges, including:
Requires long-term commitment from all levels of the organization.
Requires organizational culture change.
Sometimes it can be difficult to measure and evaluate the performance of TQM.

Samsung applies TQM to the company


The effectiveness of Samsung Electronics Vietnam Co., Ltd. when applying TQM
- Improve product and service quality: Applying TQM (Total Quality Management) helps
Samsung Electronics Vietnam focus on improving the quality of its products and services. TQM
requires companies to put quality as a top priority in every stage of production and business.
This includes strict control of production processes, ensuring the quality of raw materials and
components, applying testing methods and evaluating product quality.
These measures help minimize manufacturing errors, avoid substandard products, and reduce
the rate of rejected goods. As a result, the quality of products and services is improved, making
a positive impression on customers and increasing customer trust and satisfaction.
- Reduce production costs: TQM aims to optimize production processes and use resources
effectively. By focusing on eliminating waste, minimizing unnecessary processes, and
maximizing resource utilization, companies can reduce production costs. This not only helps
increase the company's profits but also helps create products with competitive prices in the
market.
- Enhance employee performance and productivity: TQM promotes employee participation and
commitment in the continuous improvement process. This can lead to increased work
performance and productivity. TQM encourages employees to contribute ideas, make
suggestions and participate in process improvement activities.
- Customer satisfaction and loyalty: TQM puts the customer at the center of all activities and
decisions. The company focuses on meeting customer needs and desires, improving product
and service quality based on customer feedback.
Currently, the working environment for workers in Vietnamese enterprises is still limited.
Employees are still not used to working in groups and often prefer to work independently,
leading to ineffective internal information exchange and this is also one of the limitations when
applying TQM. Meanwhile, applying the TQM system requires mobilizing everyone's
participation in quality improvement activities through the activities of the quality control
group.
At the same time, TQM also requires Samsung managers in Vietnam to build open, intimate
relationships and promote the creative spirit of employees. Therefore, to apply the TQM system
most effectively, Samsung Electronics Vietnam Thai Nguyen needs training on teamwork
methods, skills and tools that need to be applied to the teamwork process.

Common questions

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The SEVT factory in Vietnam provides strategic advantages by serving as a major production hub that enhances Samsung Electronics' global operations. As a leading facility in terms of revenue and profit among Samsung's Vietnamese operations , SEVT's advanced production capabilities support large-scale manufacturing and assembly of electronics, enabling cost-efficient production and quick distribution to global markets. The strategic location within Asia supports streamlined supply chain management, reducing logistical costs and allowing Samsung to respond rapidly to market demands across different regions .

Samsung's TQM practices differentiate from traditional quality management approaches by emphasizing continuous improvement, comprehensive employee involvement, and fact-based decision-making. Traditional quality management often focuses on compliance with set standards and corrective measures after defects are identified, while TQM proactively seeks to identify and prevent potential quality issues. At Samsung, TQM involves establishing a work culture that encourages creativity and collective participation, allowing for innovative solutions to quality challenges . Continuous development and careful analysis of data form the core of Samsung's TQM strategy, contrasting with traditional approaches where quality may be seen as the responsibility of specific departments rather than the organization as a whole .

Samsung's significant investment and expansion in Vietnam play a critical role in its global business strategy by enhancing its manufacturing capabilities and expanding its presence in developing markets. The building of factories in Vietnam, such as SEV and SEVT, with substantial investment capital, has been instrumental in solidifying Samsung's smartphone production capacity and facilitating product diversification . These investments support cost-effective production, allowing Samsung to maintain a competitive edge against global rivals. Furthermore, Vietnam serves as a strategic base that connects supply chains across Asia, aligning with Samsung's broader goals of international market penetration and revenue growth .

Samsung Electronics Vietnam faces challenges in implementing TQM, including the need for long-term organizational commitment and a cultural shift toward teamwork. The existing work environment favors individual work over group collaboration, making it difficult to mobilize full employee participation in quality improvement activities. These limitations can hinder the effective application of TQM, affecting overall production efficiency and innovation. Samsung must foster open relationships and promote creativity to address these challenges and fully realize the benefits of TQM in its operations .

Samsung Electronics has leveraged its TQM system to enhance customer satisfaction and loyalty by ensuring comprehensive quality control across production stages, focusing on customer needs and feedback, and improving product and service quality directly based on consumer insights. By prioritizing quality in every aspect of the production and business processes, Samsung minimizes manufacturing errors and substandard products, which positively impacts customer experience and increases trust . The company's dedication to continuous testing and evaluation further ensures that customers receive high-quality products consistently .

TQM contributes to Samsung Electronics Vietnam's production efficiency by optimizing production processes, ensuring the quality of raw materials and components, and minimizing waste through efficient resource utilization. This system reduces production costs and enhances profits by focusing on eliminating unnecessary processes and leveraging resources effectively to create competitive-priced products. Moreover, TQM's emphasis on continuous improvement fosters a working environment that increases employee performance and productivity, ultimately leading to higher customer satisfaction and loyalty .

Samsung's strategic goals for sustainable development include orienting towards global citizenship experience, protecting the environment, and delivering economic and social value through advanced products and services. The company emphasizes creating great value for people, society, and the environment, alongside tangible contributions to the economy . These goals are encapsulated in their 'Five Business Principles,' which stress compliance with law and ethics, maintaining a healthy corporate culture, respecting stakeholders, environmental protection, and societal responsibility .

Samsung's application of the 'Five Business Principles' profoundly impacts its corporate social responsibility (CSR) and ethical standards by integrating comprehensive legal compliance, ethical behavior, respect for stakeholders, environmental protection, and societal responsibilities into corporate operations. These principles serve as a guide for decision-making processes and ensure that business activities align with ethical norms and CSR objectives. The emphasis on legal and ethical compliance ensures transparency and accountability, enhancing Samsung's reputation and fostering trust among customers and stakeholders .

Significant milestones in Samsung's mobile phone manufacturing capabilities in Vietnam began with the construction of a factory in 2008, which served as a foundational move for other corporations' expansions . April 2009 marked the operation start of SamSung Electronics Vietnam (SEV) with a substantial $2.5 billion investment in Bac Ninh . Subsequent developments include launching the Galaxy smartphone line in 2010, which utilized the Android operating system, enhancing both the company's market presence and technological advancement .

Samsung's focus on TQM reflects its commitment to maintaining a competitive advantage by ensuring high standards of quality, continuous improvement, and operational excellence. By embedding TQM principles such as committed leadership and the involvement of all employees in quality enhancement, Samsung can consistently deliver superior products that meet customer expectations. This dedication to high-quality standards reduces errors and increases efficiency, supporting market competitiveness. The integration of TQM in production processes allows Samsung to adapt swiftly to changing customer needs and technology advancements, which is crucial in the fast-paced electronics industry .

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