In the workshop "Supporting Industries - The Golden Key for the Development of the Vietnamese Automobile Industry" at AutoTech 2018, Mrs. Truong Thi Chi Binh, Director of the Center for Enterprise Development (SIDEC), Vice President and General Secretary of the Vietnam Association of Supporting Industries (VASI), gave a brief speech but fully reflected the current situation of supporting industry for the automobile industry in Vietnam. According to Mrs. Binh, Vietnam’s automotive supporting industry have 84 1st tier suppliers and 145 2nd tier suppliers, of which only 56 are Vietnamese companies. They mainly supply spare-parts for motorcycle industry.

        After 10 years, the automotive supporting industry is lack of both quantity and quality. Only 64% of the companies are ISO certified, 44% have applied Lean manufacturing and 5S, only two have achieved IATF 16949 standard- a quality management system for automotive sector, and 5 companies are in the process of implementing to get this certification. Compared with the Thai with more than 2,000 IATF 16949-certified companies, Vietnam’s supporting industry can be considered relatively weak.

        In the circumstance that the car industry has experienced significant development, and VINFAST is implementing their project speedily, a big issue they are facing is the lack of domestic suppliers who have enough capability to provide high quality components for them to achieve the goal of localization ratio. So, this is a challenge but also an opportunity for Vietnamese enterprises to strive for professionalism in order to be able to step into the global supply chain.

        SOPEC can support your company in gradually establishing a quality management system with basic tools such as 5S, visual management, to Lean tools, and international quality standards: ISO 9001:2015 and IATF 16949:2016.