Saying goodbye to contract work, entering the global supply chain

In a remarkable display of Vietnamese ingenuity and ambition, a new generation of entrepreneurs is eschewing the traditional role of mere contract manufacturers to become integral suppliers within the global supply chain. These Vietnamese professionals are leveraging their intellect and dedication to secure positions as leading suppliers for world-renowned multinational corporations. This evolution marks a significant leap from basic assembly to sophisticated manufacturing, demonstrating Vietnam's growing technological prowess.

One compelling example is Mr. Nguyễn Trọng Đáng, Director of Việt Nguyên Precision Mechanical Co., Ltd. His journey into the semiconductor and aerospace industries began with a U.S. company, and after five years, he established his own firm, Duy Việt, in 2011, later renamed Việt Nguyên. Facing initial hurdles in Vietnam's nascent semiconductor industry, including difficulty securing bank loans and a lack of collateral, Đáng's company persevered. A pivotal moment came in 2013 with a crucial order for components used in testing Apple's iPhone chips. The partner company's support, through advance payments and deferred material costs, was instrumental in Việt Nguyên's survival and subsequent growth.

Việt Nguyên's trajectory is a testament to overcoming challenges. Starting with a modest 200m² workshop and a single machine purchased with 160 million VND, the company has expanded to a 6,000m² facility, with revenues soaring from approximately 3 billion VND in 2016 to hundreds of billions by 2025. This growth was fueled by a commitment to tackling difficult "orders" and investing in machinery to meet increasingly complex demands. The company now produces up to 60% of the components for iPhone chip testing machines and has expanded into the aerospace sector, supplying components for Safran and Boeing. Similarly, IDEA Group, led by Đỗ Hoàng Trung, showcases advanced automation and robotics, challenging the perception that Vietnamese businesses are limited to basic manufacturing.

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