Today was a very long day with an early start of 7:30 am and two site visits during the day. Our group visited the Vietnam Singapore Industrial Park and II-VI today because II-VI is actually located on the industrial park. I really enjoyed both site visits because VSIP is actually my company so it was cool seeing the company that I’ve researched about before in person and II-VI was really interesting because we were able to tour the factories and see the making of their products up close.
Vietnam Singapore Industrial Park is a joint venture between the governments of Vietnam and Singapore. Basically, Singapore owns 51% of the company and Vietnam owns the rest and both governments work together to attract foreign businesses. This sort of partnership with another government seemed to be common for Vietnam, as they listed multiple other industrial parks like this one but instead with Chile, India, South Korea, and more. By having industrial park partnerships with other governments, Vietnam is able to attract foreign investors and is able to develop its economy and foster further development.
After our visit to the VSIP headquarters, we headed to the II-VI site located on the industrial park. In regards to II-VI, the company is a manufacturing company that produces laser products. This company faces many challenges, though, especially regarding employee turnover and employee training. II-VI is faced with the challenge of finding a way to incentivize their employees into staying longer rather than leaving and going home. II-VI is also very interesting because it is actually a Pennsylvania based company. When asked why they chose to expand into Vietnam, the company said that they saw a great opportunity for low-cost expansion due to low labor costs, tax incentives, and its central location in Southeast Asia.