Establishing Manufacturing & Sourcing in Vietnam

Webinar:

Establishing Manufacturing & Sourcing in Vietnam

Establishing Manufacturing & Sourcing in Vietnam

About The Webinar


Who Should Watch?

Executives of US companies who are facing manufacturing, contract manufacturing or sourcing challenges in China or other countries

Executives of US companies expanding Southeast Asian operational and supply chain capabilities to better service customers


US companies are establishing or relocating to Vietnam for a number of reasons, not the least is diversification from China. Vietnam has become a preferred destination as China labor costs and geopolitical concerns increase, and as US/China tariffs remain.

Vietnam has a significant manufacturing base, which was traditionally focused on textiles, apparel, and furniture.

Vietnam has increased their manufacturing capabilities and are now major producers of consumer electronics, telecom equipment, machinery and auto parts. Samsung produces a third of their total output in Vietnam and is the country’s largest exporter.

East West Associates’ speakers addressed these questions, including:

    • Why – and How – are US companies developing manufacturing, contract manufacturing & sourcing capabilities in Vietnam?
    • What industry sectors are finding sourcing & manufacturing success in Vietnam?
    • What are the advantages of Vietnam as compared to the other ASEAN Countries?
    • What financial & operational incentives does the Vietnamese government provide to US companies to establish operations on leased or owned facilities?
    • How should our investment strategy be designed to best meet the Vietnamese Investment goals?
    • How does Vietnam compare to China & Thailand? Lease rates? Building costs? What are the relative advantages of Vietnamese Business Park options?
    • Can you summarize the Vietnamese/US trade relations and tariff policies?

Our speakers briefly presented two recent case studies:

    • How a Minnesota-based manufacturing client established a Vietnamese contract manufacturing arrangement to diversify from China and service the US market
    • Key experiences of a Michigan-based automotive manufacturing plant for an operational and supply chain audit
Establishing Manufacturing & Sourcing in Vietnam

Speakers

Mark Plum | Director, East West Associates
  • Former President of Briggs & Stratton Asia (NYSE: BGG)
  • VP Sales & Marketing, American Standard Thailand & American Standard China
    Establishing Manufacturing & Sourcing in Vietnam

    Presentation

    Jacob Miller | Director, East West Associates (Vietnam)
    • Former Operations Engineer for Caterpillar
    • Focus in Supply Chain development, procrurement process improvements and facility establishment
    • Currently based in Ho Chi Minh
    Establishing Manufacturing & Sourcing in Vietnam

    Watch Video

    ARTICLES
    CASE-STUDIES
    MEDIA CLIPS
    WEBINARS

    Establishing Manufacturing & Sourcing in Thailand

    Webinar:

    Establishing Manufacturing & Sourcing in Thailand

    Establishing Manufacturing & Sourcing in Thailand

    About The Webinar

    East West Associates Roundtable with Senior Executives


    Who Should Watch?

    Executives of US companies who are facing manufacturing, contract manufacturing or sourcing challenges in China or other countries.

    Why Should You Watch?
    For ideas and guidance to help navigate new business manufacturing and supply chain in Thailand.


    US companies are establishing or relocating to Thailand for a number of reasons, not the least is diversification from China. Thailand has become a preferred destination as China labor costs and geopolitical concerns increase, and as US/China tariffs remain.

    Thailand has a significant manufacturing base and available skilled labor. For example, in 2021 Thailand became the largest motor vehicle-producing country in Asia Pacific, producing 1.9M vehicles.

     

    East West Associates’ speakers will answer questions, including:

    1. Why – and How – are US companies developing manufacturing, contract manufacturing & sourcing capabilities in Thailand?
    2. What industry sectors are finding manufacturing & sourcing success in Thailand?
    3. What financial & operational incentives does the Thai government provide to US companies to establish operations on leased or owned facilities?
    4. How should our investment strategy be designed to best meet the Thailand Board of Investment goals?
    5. How does Thailand labor compare to China & Vietnam? Lease rates? Building costs? What are the relative advantages of Thai Business Park options?
    6. Can you summarize the Thai/US trade relations and tariff policies?

    Our speakers briefly present two recent case studies:

      • How an Ohio-based industrial company successfully established a Thai contract manufacturer relationship
      • Key experiences of a Michigan-based electronics manufacturer when relocating its China-based manufacturing to Thailand
    Establishing Manufacturing & Sourcing in Thailand

    Speakers

    Mark Plum | Director, East West Associates
    • Former President of Briggs & Stratton Asia (NYSE: BGG)
    • VP Sales & Marketing, American Standard Thailand & American Standard China
    Steve Blyth | Nederman Corporation (Thailand)
    • Former Managing Director of Southeast Asia, Nederman Corporation (Thailand)
    • Former Sales & Commercial Director, Volvo Cars (Thailand) Ltd.

    • Currently based in Bangkok, Thailand

    Establishing Manufacturing & Sourcing in Thailand

    VIEW WEBINAR

    Establishing Manufacturing & Sourcing in Thailand

    PRESENTATION

    ARTICLES
    CASE-STUDIES
    MEDIA CLIPS
    WEBINARS

    Timely Topics To Drive Growth.

    Sign up for our webinars.

    Sign Up

    OUR CLIENTS

    GLOBAL FOOTPRINT SERVICES: GLOBAL EXPANSION (ASEAN)

    GLOBAL FOOTPRINT SERVICES:

    GLOBAL EXPANSION (ASEAN)

    GLOBAL FOOTPRINT SERVICES: GLOBAL EXPANSION

    BACKGROUND

    Global firm needed to increase China/Asia manufacturing capacity. EWA was engaged to develop and implement an Asian Manufacturing Footprint Strategy to drive long-term profitability.

    GLOBAL FOOTPRINT SERVICES: GLOBAL EXPANSION

    APPROACH

    Step 1

    Identifying the expansion criteria

    • Company analysis
      • Expansion criteria: labor supply/costs, government incentives, inflation rates, availability of raw materials, transport & export logistics, supply chain vendor availability
    Step 2

    An in-depth comparative analysis of 6 selected countries

    • Philippines, Malaysia, Indonesia, Vietnam, Thailand & China
      • Expansion recommendation: Thailand
    Step 3

    On the ground interaction

      • Negotiated conditions for property purchase & property management (waste removal, perimeter security, etc.)
      • Negotiated investment incentives with Secretary General of Royal Thailand Board of Investment
      • Qualified local Thai vendors to support the company’s manufacturing location
      • Met with local legal and accounting firms to identify the necessary criteria for establishing a business entity
    Step 4

    Hands-on implementation

      • Property was purchased and all pre-construction permits/licenses/registrations were acquired by October 2017
      • Plant designs, construction budget/timeline & all construction partner contracts were finalized in November 2017
      • Plant construction and equipment installation began in January 2018 and was completed in April 2019
      • Identification and recruitment of supply chain, distribution & logistics partners was completed in February/March 2019
    GLOBAL FOOTPRINT SERVICES: GLOBAL EXPANSION

    RESULTS

    Government Incentives

        • 8 year tax holiday from CIT, 50% tax reduction for an additional 5 years

    Cost Reduction

        • $22.0M tax savings over 10 years
        • $4.3M annual labor savings after 5 years
        • $1.8M annual material savings after 5 years
        • $120/unit average freight savings

    Company Growth

        • 42% increase in sales over 5 years
        • 53% increase in revenue over 5 years

     

    Company Forecast

    ARTICLES
    CASE-STUDIES
    MEDIA CLIPS
    WEBINARS

    Timely Topics To Drive Growth.

    Sign up for our webinars.

    Sign Up

    OUR CLIENTS

    GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

    GLOBAL FOOTPRINT SERVICES:

    PLANT CLOSURE

    GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

    BACKGROUND

    As part of a global restructuring of business units, a multinational chemical company was closing one of their Chinese production facilities. EWA engaged as Project Leader with responsibility for closure implementation.

    GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

    APPROACH

    Six months prior to plant closure

      • Closure strategy (budget, timing, expenditures, government relations, etc.)
      • Defined implementation team (Operations, HR, Legal, Security, IT, etc.)
      • Development of communication plans (staff, government, external, etc.)
      • Security risk assessment (employee unrest, physical & IP assets theft, etc.)

    Three months prior to plant closure

      • Implementation of operational and protective security measures
      • Finalized equipment & inventory disposition, decommissioning plant, etc.
      • External stakeholder negotiations (governmental agencies, landlord, etc.)
      • Obtain approvals from business zone, governmental authorities, etc.
      • Identification of compliance and payment issues, severance packages
    Step 3

    Upon plant closure and after

      • Finalization of equipment disposition and plant demobilization
      • Filing government documentation in keeping with the registration, business license, board resolutions
      • Filing of all necessary financials, bank accounts, tax, VAT rebates, registered capital and customs documentation
      • Competition of all de-registration and governmental documentation and plant turnover to the landlord
    GLOBAL FOOTPRINT SERVICES: PLANT CLOSURE

    RESULTS

      • No theft of IP assets, physical violence or governmental authority repercussions
      • 100% of employees signed employment forms
    ARTICLES
    CASE-STUDIES
    MEDIA CLIPS
    WEBINARS

    Timely Topics To Drive Growth.

    Sign up for our webinars.

    Sign Up

    OUR CLIENTS

    GLOBAL FOOTPRINT SERVICES: SITE SELECTION

    GLOBAL FOOTPRINT SERVICES:

    SITE SELECTION

    GLOBAL FOOTPRINT SERVICES: SITE SELECTION

    BACKGROUND

    A German-owned chemical company with an ageing facility was being pressured by local authorities to relocate to an “official” chemical processing zone, as part of the Chinese government’s initiative to combat industrial pollution. EWA was engaged to conduct a comprehensive site selection process and provide the client with quantified site recommendations.

    GLOBAL FOOTPRINT SERVICES: SITE SELECTION

    APPROACH

    Create functional definition of plant

      • Purpose for expansion, customers, supply chain, products, capital equipment, etc.
      • Definition of the site requirements & specifications:
      • Size of plant, land requirements, structural requirements, utilities and consumption, logistics, labor force requirements, ground compaction, water table, number of employees, manufacturing space, office space, employee facilities, etc.

    Analysis of company performance influencers

      • Logistics, location of customer base, location of suppliers, location of business partners, freight & transportation costs, current property costs, current operational costs, government incentives, etc.
    Step 3

    On the ground interaction

      • Identification of 7 business/chemical parks for further exploration based upon site & company criteria
      • Personal site visits, face-to-face negotiations, meetings with other companies located in the individual business parks & interaction with local government officials
      • Tours with company executives
      • Negotiations and confirmations of land price and tax incentives
      • Analysis of the impact on startup and operational costs
    Step 4

    Recommendation

      • Provided 3 qualified location options with full analysis
    GLOBAL FOOTPRINT SERVICES: SITE SELECTION

    RESULTS

      • Significant tax and land incentives were attained by EWA negotiations
      • Client approved EWA recommendation and final negotiations are currently in process.
      • Client has engaged EWA in the role of “Owners Representative” for follow-on activities including coordinating design and overseeing construction
    ARTICLES
    CASE-STUDIES
    MEDIA CLIPS
    WEBINARS

    Timely Topics To Drive Growth.

    Sign up for our webinars.

    Sign Up

    OUR CLIENTS