INTRODUCTION

Samsung, a Seoul-based multinational business, is a global technological leader.

Samsung, established in 1938 by Lee Byung-chul as a modest commercial concern
selling dried seafood, locally grown foods, and noodles, has expanded into electronics,
shipbuilding, construction, and insurance. Today, Samsung is best recognised for its
cutting-edge consumer electronics, including smartphones, tablets, TVs, and appliances
for the home. The Galaxy series, which competes with Apple and Huawei, dominates the
worldwide smartphone market. Samsung also makes memory chips, CPUs, and other
components for technological firms. This article examines Samsung's globalisation and
its tactical advantages and disadvantages.
I. Globalization

The term "globalization" refers to a broad network of economic, cultural, social, and
political interactions and activities that extends beyond national borders, which is the
general meaning of the term (IMF, 2019). Though, "globalization is not a policy option
but a fact to which policy makers must adapt," as is generally accepted. There are
opportunities and threats that come with globalisation (IMF, 2019). There is great
potential for economic expansion, which in turn may enhance people's living conditions.
When firms move their operations to take benefit of reduced costs of doing enterprise in
other areas of the globe, they may pose problems for the well-being of employees,
economies, and the environment.

Especially in the context of economy, according to the Committee for Development

Policy, the term "globalization" refers to the widespread and fast dissemination of
technology, as well as the rising interconnectedness of world economies as a
consequence of increased cross-border commerce in goods and services, the movement of
money across borders, and the proliferation of new information and communication
networks (Malik, 2019). The fast rise of information's importance in all forms of
productive activity and the increasing emphasis on marketization are the two main drivers
propelling the world economy toward global integration.

II. Key Factors and Impacts:

1. Cost driver:

Opportunity for global scale or scope economics, experience effects, sourcing efficiencies
reflecting differentials in prices across nations or regions, and technological benefits all
contribute to the globalisation of costs that form the industry's economics (Malik, 2019).

 Economies of scale:

The goal of economies of scale is to raise output levels while minimizing costs. It also
shows how the degree of specialization on manufacturing elements correlates with
economic gains. Through mass production at cheap per-unit costs, economies of scale
allow businesses to save money. Samsung Electronics understood the importance of
economies of scale in the semiconductor industry. Many electronic gadgets, like
Samsung's faradaic cellphones, rely on semiconductors to execute a wide variety of
operational operations. The achievement of Samsung's semiconductor production
operations has led to the establishment of overseas research and development facilities
and manufacturing lines, allowing the company to sell its goods on a global scale at a
reduced price thanks to economies of scale (UKEssays, 2018).

 Innovation of Technology:

Samsung's power comes from the company's commitment to further investing in

semiconductor manufacture. There is an oversupply of chips in the ecosystem, and
consumption is declining, thus several big chip makers have reduced output. Despite this,
Samsung is committed to expanding their chip manufacturing capacity. For instance, in
June 2022, Samsung beat off rivals Intel and TSMC to become the initial company to
mass produce 3-nanometer processors. This, as opposed to contracting with an external
chip manufacturer, allows Samsung save costs while manufacturing their new ranges of
electrical gadgets (Kim, 2021).

 Differing Country Cost:

Globalization has connected and concentrated worldwide business, but it has failed to
balance strengths among countries and areas, notably in physical and human resources.
Cost hinders Samsung's overseas expansion. To boost profitability, Samsung Electronic
transferred its factories to Southest Asia (Thoumrungroje, 2004). South Korea, Japan,
China, and other electronics factory locations have raised employee remuneration and
manufacturing expenses up the value chain. Samsung Electronics moved its
manufacturing to Indonesia, Vietnam, Cambodia, and the Philippines to save costs.
Samsung Electronics also benefits from inexpensive labor in these countries, particularly
in developing nations (IvyPanda, 2021). Production expenses depend on material
availability and pricing.

 Impact of Cost Drivers (Opportunities and Challenges):

Samsung, being one of the world's top electronics manufacturers, is able to keep its
pricing low by taking use of economies of scale within its manufacturing methods.
Samsung is able to spend in R&D and create cutting-edge products because to economies
of scale. Samsung is able to manufacture many of its parts in-house, including memory
chips, screens, and batteries, thanks to its vertically linked supply network. By cutting out
the middleman and streamlining manufacturing, Samsung is able to save money. It also
helps the business maintain tighter control over the quality of goods and adapt more
rapidly to market shifts. However, swings in the cost of commodities like metals,
chemicals, and electronic components have a major impact on Samsung's operations
across the world. The company's profit margins and pricing strategies may be affected by
the rise in manufacturing costs brought on by currency changes.

2. Market driver:

Market drivers include the amount to which customer needs match internationally,
customers buy worldwide, multinational channels of distribution arise, marketing systems
are transferable, and "lead" countries where most innovation happens. Market must
consider:

 Global Customers:

As a result of internationalization, Samsung had been able to expand into new areas and
attract customers from all over the globe. Samsung may reach more customers and
expand their market share through extending into new markets and adapting its goods to
local tastes. The corporation now operates over 3000 outlets in over 200 nations. Large-
scale electronic goods retailers, niche shops, and digital marketplaces all fall under this
category (Samsung Global Newsroom, 2020). Access to Samsung goods is ensured
through the company's vast distribution network.

 Growth Opportunities:

Companies may take the first opportune step toward globalization if they base their
decisions on accurate assessments of market growth. Commercialization in emerging
regions is possible for clients with substantial and intermediate incomes, according to
Samsung (Samsung, 2021). Additionally, Samsung's supply chain is improved because to
the globalisation phenomenon. If a consumer in another nation wants to purchase a
smartphone from Samsung, they may do so quickly and easily via an online retailer like
Alibaba, Amazon, eBay, etc. Due to the proliferation of online marketplaces,
convenience has been delivered right to the doorstep of the consumer. China was
Samsung's biggest international market, accounting for 30% of worldwide sales in the
third quarter of 2021 (Cho, 2021). This compares to 29% in the United States, 16% in the
rest of Asia and Africa, and 12.6 in Europe.

 The Convergence of Customer’s Needs:

Product commercialization will be simplified if companies pay greater attention to

market categorization and consumer wants and requirements. Clients' rudimentary
requirements vary across geographical areas due to cultural norms and traditions. People
in one country may have quite different tastes than those in another due to cultural
differences and social taboos. To address this issue, Samsung released a plethora of
smartphones, each with its own unique design and set of cutting-edge capabilities to
appeal to a certain demographic. Samsung puts a lot of effort into improving the sensors
and CPUs of its newest phones so that they may provide users a satisfying experience.
(Kim, 2018).

 Impact of Market Drivers (Opportunities and Challenges):

Samsung profits from the growing worldwide market for smartphones, tablets, TVs, and
home appliances. This increased demand offers the organization substantial chances to
gain market share and income. Samsung's varied product line appeals to global
consumers. This diversified offering protects the company's income sources from market
volatility in certain product categories. Samsung's biggest problem is the electronics
industry's rapid technical progress. To remain ahead of its competition, the corporation
must actively engage in development and research. Samsung might lose market share to
more inventive competition if it doesn't. Concentration and slower development in certain
sectors, especially smartphones, might also affect Samsung. As customers hang onto their
smartphones longer or move to cheaper competitors, Samsung's growth potential may be
constrained, forcing the firm to seek other product categories or markets.

3. Competitive driver

Competitive drivers include the degree to which enterprises from various continents
compete, internationalization of corporate plans and capabilities, and market
interconnectedness. Competitive drivers are worldwide market competitors along with
industry characteristics.

 Global Network and Strategic alliance created:

Samsung is a technological leader with cell phones, electronic goods, electronic

components, and display panels. This market is huge and competitive. In the third quarter
of 2021, Samsung led the market for smartphones with a 20% market share, followed by
Apple with 14%. Apple—Samsung's largest competitor—is another incentive to go
worldwide. Apple spends in research and development to produce new goods and
technology that are distinct from rivals and targets wealthy clients with luxury items at
high prices to enter the worldwide market. Samsung's internationalization approach
emphasizes pricing. The corporation sells a variety of items at various prices for various
customer groups. This helps it compete against Apple. Apple's sealed environment
integrates hardware, software, and services. Apple's smooth user experience boosts client
retention and iCloud, Apple Music, and App Store income. Samsung, in contrast, uses the
open-source Android ecosystem and works with Google for software and services, which
might divide the consumer's experiences (Lunden, 2021). Apple is one of the key reasons
Samsung is competing globally.

 Impact of Competitive Drivers (Opportunities and Challenges):

Samsung is able to stay ahead of the competition in today's cutthroat market because to
the business's dedication to research and development and to creating distinctive
products. The firm's continued success may be attributed to the innovative technology
and distinctive characteristics it has included into its goods as a result of this emphasis.
However, Samsung is up against stiff competition from other companies like Apple,
Huawei, Xiaomi, and LG. To keep or increase its market share, the corporation must
respond to intense competition by constantly innovating its goods, using aggressive
pricing methods, and spending substantially on marketing and advertising.

4. Government drivers

Governmental drivers include things like liberal trade policies, relaxed regulation, and
standardized products and technologies.

 Trade policies:

Free trade agreements and regional economic cooperation are two examples of
international trade policies that may help open up new markets for Samsung and lower
trade barriers, providing fuel for the business's worldwide development. For instance,
thanks to the United States-Korea Free Trade Agreement (KORUS FTA), tariffs and
trade obstacles between the United States and South Korea have been lifted, benefiting
companies like Samsung by lowering their production costs and expanding the
availability of their goods in the United States market (Kim. Y, 2011). In addition,
national FDI regulations may limit Samsung's capacity to expand internationally. For
instance, China's FDI policy promotes foreign investment in certain industries and
locations, luring corporations like Samsung to set up shop there in order to take
advantage of lower production costs and enhanced competitiveness.

 Technological standards:

Government technological norms may affect Samsung's internationalization. Samsung

must follow governmental and global communications regulations including 4G, 5G, and
more while creating smartphones and networking equipment. Samsung must follow
certain standards for connectivity, reliability, and global market access. EMC and
electrical safety requirements are also enforced by the government. To protect customers
and prevent legal issues, Samsung must follow certain criteria throughout the product's
development and manufacture. The European Union's General Data Protection
Regulation (GDPR) and GDPR Act have increased government attention on data security
and privacy. California Consumer Privacy Act. To preserve customer confidence and
prevent legal issues, Samsung must guarantee its products and services meet these data
protection requirements.

 Impact of Government Drivers (Opportunities and Challenges):

In certain nations, government policies and subsidies stimulate foreign direct investment
(FDI) and technology sector development. In Vietnam and India, where it has production
operations, Samsung has received tax benefits and lowered import levies. South Korea's
free trade agreements (FTAs) help Samsung as well. Samsung may increase its market
reach and worldwide competition by lowering trade obstacles, taxes, and restrictions
using such agreements. Nevertheless, Samsung's worldwide activities subject business to
political hazards such political instability, civil unrest, and government policy shifts.
These risks may impair the company's operations, supply chain, or market access.
Samsung's worldwide operations may be affected by trade tensions and protectionism
like the US-China trade war. For example, rising tariffs on electronic components or
completed goods might raise prices and lower competitiveness in impacted industries.
B. THE COMPLEXITY OF STRATEGIC OPPORTUNITIES AND
CHALLENGES.

I. THE GLOBAL STRATEGIC COMPLEXITY

The strategic complexity of internationalization refers to the many difficulties and

possibilities that arise for companies in today's more interdependent and interconnected
globe. Many variables contribute to this complexity, including the law (International
trade law), the economy, the environment, and the control of international supply
chains between nations. To succeed in this environment, businesses need flexible tactics
that can change with the times. This section of the report analyzes Samsung's presence on
the Vietnamese market.

1. Legal complexities (International trade law):

Businesses from other nations purchase and sell products and services with one another
in what is known as international commerce. The worldwide market is used for the
purchase and sale of anything from consumer items and raw materials to food and
equipment.

Today, when Vietnam has signed free trade agreements, local and global enterprises like
Samsung in Vietnam face chances and problems, according to VNA (2022). Vietnam-
Korea Free Trade Agreement (VKFTA), starting December 2015, eliminates tariffs on
92% of products and services exchanged between Vietnam and Korea over 15 years. The
pact includes agriculture, fishery, production, and services. In 2018, 11 Pacific Rim
nations—as well Vietnam—signed the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP). The pact reduces tariffs, promotes economic
collaboration, and creates a trade and investment system for member nations. The
ASEAN-Korea Free Trade Agreement (AKFTA) includes Vietnam and South Korea. The
AKFTA was concluded in 2006, with a commodities trade agreement taking effect in
2007 and a services and investment agreement in 2009.

Strategic Oppotunities:
According to Ngoc Han (2022), investment and trading hurdles, as well as tariff and non-
tariff barriers, have been removed as a result of international trade agreements. For
instance, Samsung's manufacturing plants in Vietnam may take advantage of cheaper
import taxes on components and raw materials because to the VKFTA's goal of
eliminating tariffs on 92% of products and services exchanged between Vietnam and
South Korea. In addition, VKFTA makes it easier for Samsung to sell its goods in
Vietnam, helping the company to increase its presence in what is rapidly becoming one
of Southeast Asia's most lucrative consumer markets. General Department of Vietnam
Customs data shows that in February 2023, Vietnamese exports to South Korea were
2.1% higher than in February 2022. As one of the country's top investors, Samsung has
reaped the rewards of VKFTA thanks to the success of its mobile and tablet products in
Vietnam. Exports of electronic items have been particularly helpful to Vietnam's
development. According to Samsung Vietnam's business results in 2021, its Vietnamese
factories generated more than 50% of its worldwide smartphone production. In the initial
two months in 2023, Vietnam's exports to Thailand totaled $1.2 billion, up 12.4% from
2022. Vietnam's exports to Singapore totaled $677.7 million in the first two months of
2023, increasing 8.8% from 2022 (Lan. P, 2023). Samsung may profit from this
expansion by exporting Vietnam-made smartphones and electrical components to the
ASEAN market with cheaper tariffs, making Samsung goods more affordable in the area.
In 2022, South Korea exported 124.89 billion U.S. dollars to ASEAN nations, up from
108.85 billion the year before, based on Statista. Since the CPTPP was implemented,
Vietnam's total declared FDI capital would reach about 27.72 billion USD in 2022, and
its realized FDI capital will reach a record 22.4 billion USD, up 13.5% from the year
before. As reported by Banking magazine, this represents the greatest amount of realized
FDI in five years (2017–2022). Vietnam's exports to Canada and Mexico climbed 29.9%
and 27.6%, respectively, in 2019. As a significant investor in Vietnam, Samsung can take
benefit of this positive investment climate to grow its production facilities in Vietnam,
strengthening its supply chain worldwide, and export smartphones and electronic
components to these markets with lower tariffs, making their products more competitive.
Strategic Challenges:

Tran and Do (2019) claim that environmental issues and ecological worries are a barrier
to maintaining socioeconomic progress while also safeguarding and conserving the
environment and harmonizing natural assets. increased focus on in modern FTAs. Thus,
the FTA participants are obligated to tackle in order to fulfill the pledged environmental
criteria in goods. High requirements in areas like labor rights, environmental security,
and intellectual property rights are imposed on Samsung under VKFTA and CPTPP. This
may cause the firm to incur more expenses or have difficulties with its operations. In
2020, Samsung will be accused of mistreating employees at its Vietnamese factory. The
corporation has subsequently implemented changes to enhance workplace conditions,
which may result in higher operational expenditures. While free trade agreements (FTAs)
undoubtedly have their positive effects, they also pose a significant challenge by raising
the level of competition across the board. The AKFTA has lowered trade obstacles and
tariffs, making Samsung's competitors in the ASEAN region more formidable than ever.
The Vietnamese cellphone industry has grown in recent years thanks to companies like
Vsmart (a Vingroup affiliate). In light of the AKFTA's reduction of tariffs on consumer
electronics, Samsung may face more rivalry from indigenous companies in Vietnam. In
2021, Vsmart will have a market share in Vietnam that places it in the top five of all
smartphone makers. Additionally, domestic tax policy for FDI businesses has grown
more open and stringent. Articles 9, 10, and 11 of Circular 219/2013/TT-BTC establish
three different VAT rates of 0%, 5%, and 10%. Taxes on goods and services in Vietnam
range from 10% for most products to 5% for specific necessities. The complexity of the
tax system, the possibility of cash flow challenges, and the necessity to keep up with
regular changes in tax rates all present difficulties for Samsung in managing VAT
compliance in Vietnam. rules and guidelines (Deloitte, 2020).

2. Economic complexities

The structure of economic output is a good indicator of a country's economic complexity,

which has become a crucial criteria for assessing its internal capacity (Saurabh, 2020).
The global economy has a significant effect on the national economies of all nations,
including Vietnam. The global economy has been fraught with peril in recent years, what
with the spread of the Covivirus H19, escalating trade disputes, and other factors.
Because of these shifts, economic and trade policy has become more fluid and difficult to
forecast as a result.

Strategic Opportunities:

According to reports, Vietnam has benefited the most from the trade spat between the
United States and China. Vietnam has benefited economically from the trade war. GDP
growth in 2019 is expected to continue strong at 7%, according to official government
figures (Samuel. P. 2020). So, to lessen its reliance on the Chinese market, Samsung
opted to broaden its supplier base. Vietnam became a critical production center for
Samsung consequently. To continue to solidify its position in Vietnam, Samsung finished
building a $220 million R&D center in Hanoi in 2020 and opened it in 2022 (During H,
2022).

With a low infection incidence and little interruption to economic activity, Vietnam had
been lauded for its handling of the Covid-19 outbreak. In reaction to the assistance
provided by the Vietnamese Government, Samsung Vietnam General Director Choi Joo
Ho declared, "We have not changed our business strategy in Vietnam due to the COVID-
19 pandemic. Each year, we spend hundreds of millions of dollars more than the allowed
investment to keep the plant running smoothly, increase output, and guarantee high-
quality output. By the end of 2021, Samsung Vietnam will have invested a total of 18
billion USD, or 102% of the 17.7 billion USD that was allowed for investment in 2020.".
In 2022, Samsung's exports were worth USD 65 billion, or 9% of Vietnam's total import
and export turnover of USD 700 billion. Due to the increase in exports, Samsung has
been able to generate more income and penetrate new markets (Minh. H, 2022).

Strategic Challeges:
Samsung benefitted from the Vietnamese government's quick reaction to the COVID-19
pandemic, but the epidemic nevertheless caused a lot of problems for the company. In
several countries, including Vietnam, the epidemic has contributed to a severe lack of
available workers. The Ministry of sector and Trade has predicted that the worldwide
electronics sector, including Samsung Group, would suffer as a result of the current
pandemic. When it comes to exports, Samsung Vietnam especially is predicted to lower
its goal to about 45.5 billion USD in 2020. In addition, an employee at Samsung's
smartphone facility in Vietnam was tested positive for Covid-19 in March 2020, forcing
the company to temporarily halt production. The Galaxy S20 series and the Galaxy Z Flip
are among the Samsung flagship products whose manufacturing has been impacted by
this shutdown (Ngoc. B, 2020). The provincial minimum salary in Vietnam rose by 6%
(respectively from 180,000 VND to 260,000 VND) than the prevailing minimum wage as
of June 12, 2022, under Decree No. 38/2022/ND-CP signed by Permanent Deputy Prime
Minister Pham Binh Minh. This boosted labor expenses for Samsung. The minimum
wage in Vietnam is projected to rise by 38 percent between 2016 and 2021. When
considering whether or not to increase manufacturing in Vietnam, Samsung may think
twice if labor prices continue to rise.

Furthermore, the COVID-19 pandemic has influenced shifts on consumer preferences

throughout the globe. This also necessitates MNCs' product diversity and the capacity to
respond to changing conditions, which affects the complicated strategies of major
companies, like Samsung. Instead of rising demand for technological goods such as
mobile phones and laptops for distant work and online studying at the time, customer
demand for household products such as washing machines and refrigerators increased
significantly in Vietnam since individuals spent more time at home. According to the
Vietnam Electronic Business Association (VEIA), sales of home appliances such as
washing machines, refrigerators, and air conditioners climbed by 10-15% in the initial
half of 2020 compared to the same time in 2019. In 2019, mobile phone sales in Vietnam
fell by roughly 13% year on year in the first half of 2020. As a result, Samsung Vietnam
must alter its supply chain and manufacturing to satisfy these shifting demand trends.

3. Environmental complexities:

The rise of the global economy and the complexity of globalization have both contributed
to an increasingly complicated natural environment. Thus, globalization's environmental
problems and Vietnam's increasing need for green operations and sustainable
development have an impact on Samsung's strategy. Samsung has both possibilities and
problems in the Vietnamese market as a result of globalization's effects on the
environment.

Strategic Opportunities:

In an effort to achieve business sustainability, Samsung has seized on Vietnam's

complicated environmental concerns. To begin, Samsung has put money into energy-
efficient machinery for its factories in Vietnam. Solar panel installations, LED light bulb
substitution, and the introduction of energy monitoring and control systems all fall under
this category. According to Vietnam Electricity, Samsung Electronics' Ho Chi Minh City
facility has cut its energy use by 12.4 percent thanks to the use of an energy-saving
algorithms (Duc T, 2022). This demonstrates the company's attempts to implement
energy-saving and environmentally friendly solutions. Samsung's Vietnam operations
also include trash reduction and recycling initiatives. This involves things like recycling
electronics and hazardous garbage and using recycled materials wherever possible
throughout production. Samsung officials told VNA (2023) that the company plans to
utilize only recycled plastic in its smartphones by 2050. Particularly, the utilization of
recyclable and ecologically friendly components in the construction of the Galaxy S23
Ultra is a powerful expression of Samsung's commitment to sustainability. The Galaxy
S23 Ultra from Samsung employs twice the number of interior and exterior parts
produced from eco-friendly materials as prior Samsung phones in an attempt to continue
its sustainable initiatives. As for the Galaxy S23 and S23 Plus, they both include eleven
environmentally friendly parts. To further aid Vietnam's green energy transition,
Samsung has funded renewable energy projects there, including solar power stations.
Manufacturing, exchange, and delivery of energy are the primary objectives of the KN
IaLy - Gia Lai Solar Power Plant Project, which is scheduled to begin in the second
quarter of 2022 and be finished in the fourth quarter of 2023. In addition to helping
Samsung use less conventional power, this investment will also help Vietnam achieve its
green power targets.

Strategic Challenges:

The Swiss air quality monitoring firm IQAir reports that urban areas in Vietnam are
experiencing dangerously high levels of air pollution. metropolises like as Hanoi and Ho
Chi Minh City. The average AQI in Hanoi in 2022 is 202, whereas in Ho Chi Minh City
it is 161 according to statistics from IQAir. If the AQI ranges from 0 and 50, the air
quality is excellent; if it's between 51 and 100, it's moderate; and if it's beyond 100, it's
dangerous. These pollutants come from companies like Samsung's. To cut pollutants and
comply with Vietnam's stricter ecological standards, Samsung must invest in and use
cleaner manufacturing technology. Water contamination and excessive water use may
result from electronics manufacturing. Samsung must limit water use and wastewater
output and comply with Vietnam's water management rules. E-waste management has
become an environmental concern in Vietnam due to high technology usage increase. In
2018, Vietnam produced over 180,000 tonnes of electronic garbage. As an industry
leader, Samsung must take charge of the disposal and recycle of digital debris produced
by its devices. It may be difficult and costly to create successful recycle programmes for
electronic trash and to educate consumers on the need of proper disposal. Samsung's
activities in Vietnam might be disrupted by natural catastrophes like floods and storms,
which are becoming more common as a result of global warming. Because of this,
Samsung's supply chain and operations strategy must compensate for the increasing
likelihood of interruption due to global warming.

4. The complexities of the international supply chain management

International supply chain management is one of Samsung's globalisation strategic
complexes. A supply chain is a collection of people, organisations, assets, operations, and
technology used to make and sell a product. From suppliers to producer to end user, the
supply chain covers everything. Supply chain management comprises all procedures that
transform raw resources into finished items. To maximise consumer value and establish a
competitive edge, it includes aggressively simplifying a business's supply-side processes.
International supply chain management tracks the physical and digital movements of
various items from their origin to their destination. Drawing together diverse and
geographically separated stakeholders, international supply chains attempt to improve
competitive advantage, generate value, and reduce costs. Because of this, the top brass at
Samsung is hampered in their ability to make sound strategic judgements. Therefore,
global supply chains add to the difficulty of formulating an effective strategy (Felea. M.,
and Nastase. I. A., 2013).

Strategic Opportuinities:

For continuous availability of essential components, all major smartphone and consumer
electronics firms rely on effective and reliable supply networks. It is critical to develop a
robust supplier network and manage its output and performance using the appropriate
supply chain technology and strategy (Webb. H, 2022). Samsung manages its supplier
base in a contemporary and long-term manner, while also cultivating tighter ties with its
vendors. According to Samsung's Quality Handbook (2020), Samsung Vietnam has used
Total Quality Management (TQM), Six Sigma, and Lean Manufacturing to eliminate
waste, increase efficiency, and enhance product quality mistakes and inaccuracies in its
Vietnam production procedures, while also ensuring the business overall is concentrated
on quality and consumer fulfilment. Furthermore, by diversifying its supply base,
Samsung is able to mitigate the hazards connected with possible supply chain
interruptions. For example, in 2019, Samsung relocated several smartphone
manufacturing lines from China to Vietnam in order to deal with rising labour costs and
the current US-China trade war (Nguyen, 2020). Furthermore, the global supply chain
enables Samsung to be more responsive to shifting market situations. Close collaboration
with providers in Vietnam, such as electronics stores and renowned merchants, has also
aided Samsung in developing long-term connections, resulting in improved collaboration
and effectiveness.

Strategic Challenges:

Over the last five years, massive international upheavals have disrupted supply networks.
Beginning and continuing is the US-China commerce tension, which disrupts commerce
between both nations and worldwide, forcing companies to evaluate their supply chains
due to tariffs and trade barriers and find different vendors or manufacturing facilities to
avoid rising expenses. Supply chain interruptions, and unpredictability result, even
Samsung. This may require finding new vendors for Chinese or US-sourced components.
To avoid tariffs, Samsung sourced components from South Korea and Vietnam. In June
2019, imported computers and electronic components from our nation, based on General
Department of Customs data achieved 3.82 billion USD, up 20.71% from 2018. In the
first half of 2019, our nation imported nearly 23.9 billion USD in laptops and electronic
parts, up 20.9% over previous year.

Furthermore, during the COVID-19 pandemic, Samsung Vietnam experienced difficulties

in its international supply chain owing to the blocking, as well as a brief halt of plants in
pandemic-affected nations. Due to the nation's government's embargo orders and plant
closures in the first quarter of 2020, Samsung Vietnam had a prolonged scarcity of
components and raw materials supplied from China. According to data from the Vietnam
Industry Administration, goods imported from China dropped by 0.86% in the initial four
months of 2020 compared with the same time last year, and by 51.45% contrasted to the
month before, affecting Samsung Vietnam's manufacturing capacity significantly.
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