Engineering Insight

LencioniP10Today, May 14th 2018, our group visited two different companies. The first company we visited was Vietnam Singapore Industrial Park (VSIP), which perfectly represents development and globalization in Vietnam. They have seven different sites in Vietnam where they have industrial parks that also consist of schools and residential areas. They lease these facilities out to other companies who want to have manufacturing plants, which is part of their profit. In their joint partnership with Singapore, the two governments work together with Vietnam having a lot of land for the industrial parks and Singapore having a lot of money to build them. As a developing country, the Vietnamese government has gotten into many deals with other countries so that they can improve development and relations with the countries they do business with. These entities allow VSIP to construct and improve factories, schools, apartments, and other residential environments. This draws a lot of workers from around Vietnam to come to live, learn, and work in the industrial park. Some cons to these foreign entities are that the government is still watching over them, and ultimately decides which imports and exports are acceptable. The next company we visited was II-VI Incorporation, a materials development company that has manufacturing plants in VSIP. Some challenges that this company faces regarding workers are having to train them for several months because a lot of the work they have to do is long and tedious. Keeping their workers happy and satisfied is also a challenge, as incentives are often given to workers, including birthday parties. Starting in Pennsylvania, the reason that this company moved globally to Vietnam is for cheaper labor costs. The main objectives are to lower labor costs and maximize production, which is accomplished by moving to a poorer, developing country. The workers are usually trained for several months on producing a very small, detailed material/product and then produces a large amount of that product. A lot of the products that are produced are semiconductors, thermal optics, and laser components. This site visit was filled with a tour of the facilities and factories, giving us a good idea of what an industrial environment looks like.

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