Objective Evaluation Of Made In Vietnam
In recent years, the advantages and disadvantages of Vietnamese manufacturing industry have been a hot topic, the domestic network began to discuss “whether Vietnam and India will become a strong competitor of Made in China”. I happen to be managing a factory in Vietnam for the past two years, and I have some front-line experience, so I can share some of my experiences and observations about the advantages and disadvantages of Vietnamese manufacturing industry with you. However, personal observation is limited, only for your reference and discussion.
Reasons For The Development Of Made In Vietnam
The project was done in mainland China for more than ten years before, and then most of it was transferred to Ho Chi Minh Industrial Park in Vietnam. The previous job was to manage the factory operations in mainland China, and for the Vietnam project only occasionally did training and consulting, and the company hired local employees in Vietnam to form a management team.
After that, Trump’s tariffs on Made in China directly accelerated the trend of product transfer to Vietnam – Trump is definitely one of the culprits of this wave of industrial transfer, the 25% tariff is frightening, and many trade conditions are still DDP (Delivered Duty Paid, after tax delivery), being forced to no way. “Made in VN” label can preserve a lot of profits, there is only one way to transfer.
The company simultaneously made a radical change by laying off the local Vietnamese commercial team, after which a Chinese manager took over. It is usually thought that local managers and teams have the best communication, but after 3 years, the company management did not approve of their performance.
The Shortcomings Of Made In Vietnam
Vietnam does have a lot of problems
First of all, the supply chain is a big problem.
Not afraid of jokes, the beginning actually have labels cartons packaging boxes are imported from China, sometimes even freight costs more expensive than the value of goods.
However, the business investment is flexible. There is no supplier at the beginning, and once there is a steady demand from local businesses, there must be a company that invests to meet that demand. It’s as simple as that.
Of course, it takes time. The factory system is large and complex, and the training of personnel takes a lot of time, but this system can be set up with enough time and money.
Sure enough after most of the year, at least 80% of the packaging materials to achieve localization, not least of which is the new foreign-owned factories in Vietnam to take over the production.
Second, the talent is not mature enough.
After the establishment of the Vietnamese factory system is not as good as mainland China. This is basically not comparable, at least for now.
Mainland engineers, 10 to 20 years of experience in a large number of; while the Vietnamese factories, engineers are mostly just a few years out of college.
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