Today was a long day, we had site visits all day along with a break in the mall. I am glad this is our only day with two site visits because it was definitely tiring. The first site we saw was Vietnam Singapore Industrial Park. I thought this site was super cool because the concept is really interesting. Singapore doesn’t have a lot of space but it has a lot of companies and connections. It is a great place for headquarters but a really bad place for factories. This means Singapore and Vietnam teamed up and Vietnam was able to provide a lot of space and low cost labor. Vietnam has entered into deals like this with other countries such as India and South Korea. This is the “flagship” deal between Vietnam and Singapore. I am sure that there will be more since it seems like a good thing for both countries.
There are a lot of pros to this deal, as I said before, the cheap labor is attractive to companies and investors looking to keep fixed costs low. VSIP provides what they call a “one stop service” for companies. They can provide ready built factories which means companies can get production off the ground in as little as a year. They also offer housing for employees and they have customs on site which is much easier than trying to do customs at an airport or a boat dock.
After we had lunch, we went to II-VI, this company was really confusing because it’s a very high tech company but it was still really interesting. II-VI had a really high turn-over rate in the past, when Tet happened the first year, they only had 50% of people come back, so they had to figure out how to shape themselves to the culture so their workforce would return. He said they do this by providing transportation, switching around pay checks so they’re at certain times. This was very successful and now they only have a turn over rate 2%.
II-IV produces a lot of different types of products, they are in many different markets. Some of their main products featured in their mission statement include, photoptics, thermos-electric products, precision optics, high-precision ceramic and metal-matrix composite components. These are all products that can be used to make a wide variety of other products so they are a very wide company. The workforce is a lot of different skill levels, some of them are entry level and some of them are highly trained. They test their workers a lot and make them re-certify, this keeps them at the top of their game and means they can’t forget things. Their products are unique sometimes, but also sometimes highly specialized. Since they have low cost labor, they are able to capture a large market share.
Also I will add more pictures later but my phone is on the bus!