Coherent was much different than the other companies we’ve visited, given that this was the first one that was manufacturing. Along with this, it was an American-founded company rather than Vietnamese. That said, learning about its production was important because of recent foreign affairs with the U.S. As we learned in their presentation, they took advantage of Vietnam’s financial liberation in the late 90’s and built manufacturing facilities for cheap labor.

A picture of some of Coherent’s thermal products.

At first, I was impressed with Coherent sheerly because of the range of products they make. Their lasers and other hardware is used in the medical field, technology, and other industries, and they’ve mastered their engineering and design. I was even impressed when they mentioned they had company outings, flexible working arrangements, full coverage health insurance, and other benefits. However, as we trekked through their facilities, I became aware of how cheap the labor really is. 

It’s no secret that countries like Vietnam and China are utilized for manufacturing because of their cheap labor, but I think knowing that fact desensitizes us to just how cheap it really is. One of our tour guides mentioned that some of their employees—who were working with intricate products and machinery—were paid $3/hr for a ten hour workday, six days a week. Some of us did the math on that and were shocked to realize just how small that adds up to, considering the amount of work they do and the level of understanding it takes to do it. To me, I saw it as engineers being belittled to cheap labor rather than celebrated for their brilliant minds. 

I understand it is more complicated than this, that there are factors like the cost of living in Vietnam; to us Americans, it feels more drastic because our cost of living is significantly higher. Further, Coherent does this because it cuts back on costs, thus they are able to expand their product depth. Despite these factors, I still think their meaningful work deserves more than what they’re given, no matter how complicated the logistics seem. 

This was not the point of the site visit, but it is something I took away from it. My impression does not discount how incredible their company is as a whole; they are innovative, driven, and meticulous with their business decisions, and I think it is admirable in a company. 

Going back to their company’s position in foreign affairs, it is crucial to question how they are proceeding with recent U.S. tariffs. While we didn’t have time to ask them about this, I can assume that this will impact their company as they heavily depend on shipping between the U.S. and Vietnam as part of their manufacturing process. The tariffs affect Coherent as a whole, not just its branch in Vietnam. Along with this, Coherent’s clients involve major industries, which could mean they are impacted by rising costs as a result. 

While we were on our tour, they told us they had expanded and built a new Vietnamese facility. Had these tariffs been in place before this decision was made, I don’t think Coherent would have gone through with it. It would be a risky decision for an American company to proceed with more manufacturing in a foreign facility, but unfortunately, it’s a problem they have to face. 

During the afternoon, we played soccer with UEF’s club soccer team! Here is a picture of some of us with our medals (participation awards… we lost pretty bad).