Day 8: Cat Lai Terminal and Dan On Food
We visited two companies today: Cat Lai Terminal and Dan On Foods. At Cat Lai, we saw the hard work behind moving shipping containers for imports and exports at a terminal operating 24 hours a day. The organization of the port seemed entirely dependent on efficiency and standardization. Rather than verbal communication, workers moving containers and drivers rely on systems and signaling.
We learned about the customs checking system, which uses red, yellow, and green levels. New companies begin in the red category and gradually build trust over time in order to move toward green. Certain products, like alcohol, always remain in red and require additional stickers and approval in order to pass through customs. It became obvious how much documentation affects profit. Smaller or lower value companies can struggle because customs fees become too expensive, cutting heavily into profit margins. Poor documentation also increases costs because containers go through additional levels of inspection, ranging from random checks to police dogs and scanners.
Another thing I found interesting was that only women are hired for customer service and documentation checking because they are viewed as more detail oriented. We also learned about consolidators, who work with companies to pair shipments together in order to completely fill containers. The port itself makes the same amount of money whether the container is full or not, but consolidating cargo helps optimize costs for the companies shipping products.
The stacking system was also extremely calculated. Containers can stack up to five tiers depending on weather conditions and weight. Poor conditions require lower stacking. Twenty eight tons is considered the net weight, and containers can only stack to the maximum height if they are around half of that weight. They explained that accidents can occur if weather changes unexpectedly or equipment becomes outdated, causing cargo to fall. However, they proudly mentioned that incidents like that have never happened at Cat Lai. The warehouse stock drivers were also terrifyingly fast and somehow able to maneuver sideways with precision through narrow spaces. We also learned that the company is currently training its own AI system and plans to integrate it into operations soon. The company performs well through efficiency, which makes them a strong choice for customers and allows them to remain profitable. In the long run, their practices should keep the company economically sustainable.
Later, we visited Dan On Foods, which felt more like a luxury retreat than a food factory. What stood out most at Dan On was the emphasis they place on employee lifestyle. They provide women with an hour and a half of free hair and nail spa services every month. The campus also included a gym, pool, river, golfing green, pool table, and even a grand piano. Compared to other food manufacturing facilities I have visited before, like Turkey Hill and Laughing Cow, the contrast was almost surreal.
When I asked our tour guide Danny if the cost of the amenities could really be justified by increased employee productivity, he reminded me of a comment I had made earlier in the tour: “I would work here for free just so I could swim in the pool and play golf.” He explained that he recently joined Dan On and feels inspired to work hard because he knows the bosses care about more than just the product and customer, but also about the happiness of their employees. This mindset seems more common in Vietnam, as we have seen strong investment in employees across many site visits, especially Dan On and Glass Egg. That investment likely improves employee retention and consistency while reducing the costs associated with turnover.
Dan On also focuses heavily on environmental sustainability and hygiene practices. They grow many of their own vegetables, collect rainwater, and use solar panels across the roofs. They explained that sustainability was very important to their founder and remains one of the main priorities across all branches of Dan On Food Group. For cleanliness, we had to change into neon green crocs to enter the facility and then a different pair of blue crocs to use the bathroom. They also manage cross contamination with different facilities for each type of nut. And they store raw ingredients in sealed containers and rooms to ensure they are not contaminated.
The coolest part was their experimental kitchen. It looked exactly like the MasterChef competition kitchen, and when I asked about it, it turns out they actually host television cooking shows there. The kitchen is also used to test new product recipes
