Vietnam has been seen as a production base for lower value-added products such as textiles, furniture, footwear, etc, but it is now changing. A typical example for this change is that many international hi-tech manufacturers have chosen Vietnam as their production bases, amongst which are Samsung, Canon and Ford. They are interested in accessing both the local and export markets. More and more foreign investors are coming to explore these new opportunities.
In the context of rising wages and increasing costs in China, many investors have moved to Vietnam and realized that there are many advantages Vietnam enjoys over China. According to Mr Matthew Greenfield, Director of East West Industries (US owned), although Vietnam is less developed than China in many respects, the country is now on a path of rapid development. East West Industries (EWI) - a leader in domestic offshore manufacturing headquartered in the USA – was one of the early foreign investors who realized the strategic advantages of Vietnam.
Young, abundant and dynamic work force, stable exchange rate, comparable freight costs, etc, are competitive advantages of Vietnam in attracting foreign investment. Grasping these advantages, in 2008, EWI put into operation its 60,000 square-foot facility in Binh Duong province manufacturing high quality plastic, metal, rubber and electro-mechanical products. Additionally, a newly added 130,000 square-foot facility will begin operations at the end of 2012.
EWI has full turn-key capability to develop and produce UL, CE, and ETL listed products.The factory later proved that its choice is right. “We’ve been very fortunate to have made the right choice to locate in Vietnam, and have enjoyed success over the past four years”, shared Mr Matthew.
With a factory in Vietnam, EWI has helped US and European companies cut down manufacturing costs and improve product quality. EWI believes there is also an opportunity to expand their capability to serve local businesses given the strong growth in foreign investment and income in Vietnam.
The issue addressed by many large manufacturers in Vietnam in recent years has been the lack of supporting industries. Vietnam is lacking basic raw materials and higher value components for production, so most have to be imported from overseas. In the long run, to sustain a stable development, EWI will continue promoting localization of raw materials to better support its customers.
Duy Khang
Vietnamese
