Today we visited two companies, VSIP and II–VI. Vietnam-Singapore Industrial Park is the company that I had done research on prior to my visit to Vietnam, so I had a list of expectations that were not only met but surpassed. I knew that VSIP made industrial parks, but what I did not know is that there is meticulous planning that goes into the design of the parks for the sake of sustainability and the aesthetic value. The beautification of the land attracts foreign investors and companies which play a major role in the rapidly expanding Vietnamese economy. Although the government initiated the corporation, they do not choose the amenities on the land (but they do have 25% share of the company’s profit). VSIP does not only host land for companies to build factories on and handle maintenance and utilities, but it creates pre-made factories available for purchase.
The other company II-VI, is actually located in one of the industrial parks built by VSIP. II-VI is a company that engineers materials and opto-electronic components. They are a vertically integrated manufacturing company which means that they manufacture all of the parts and provide all of the services that are necessary for production. Some of the products that are created include lasers and fiber optics for both military and industrial uses. The headquarters of II-VI are actually located in Saxonburg, Pa (about 45 minutes from Pitt’s campus), and the reasons for operation in Vietnam are both cheap labor and low manufacturing costs. With low-cost labor comes the responsibility of high quality products and this requires a well-trained team. Unfortunately due to customs of the country (the holiday Tet), most workers are only present for a season and new ones must be trained constantly. While it is hard to maintain an experienced crew, II-VI still dominates the industry with a grow rate of 11% per year.