Understanding Manufacturing Companies in Vietnam – 4 Key Lessons

The ODM team has recently visited one of the manufacturing companies in Vietnam to find out more about their capabilities in manufacturing products. The manufacturing facility held up to 350 workers who strive to ensure top-notch quality of products. In this trip down, we see the significance of industrial factory tours and quality control checks to more readily oversee product creation and client satisfaction.

Let’s take a look at some of the factors to consider when selecting manufacturing companies in Vietnam.

1. Manufacturing Capabilities

Manufacturing capabilities are characterized by the set of practices in use. These capabilities act as the basis for operational performance. It is important to ensure that the manufacturing company has sufficient resources and capabilities to produce different products. Some of the capabilities include: 

Product and Mold Design

• Creation of products or parts by injecting molten materials into a pre-design mould to produce the product

Mould Fabrication

• Technical team with many years of experience in developing mould that could adopt any technical requirements 

Injection Moulding

• Be able to handle a wide variety of materials such as ABS, PP, POM, PC, PA, etc to meet any of your requirements 

Electroplating (Metal/Plastic) or Painting (Metal/Plastic)

• Plating copper, nickel, chrome, and opaque chrome on ABS plastic, steel, aluminum base, etc.

 

2. Human Resources and Customer Segments

The second factor is to consider the human resources and customer base of manufacturing companies in Vietnam. To ensure that the manufacturing companies can overcome challenges that threaten them, a skilled and sufficient workforce will be required. A skilled workforce will allow the efficient and effective handling of equipment, machinery, and relationship building with clients. 

Furthermore, by understanding their customer segments is the center of a successful manufacturing company. With this knowledge, they can easily understand the customer’s request that is of your best interest. Additionally, produce tailored products based on customer needs.

3. Highly Maintained Equipment 

The third factor in choosing manufacturing companies in Vietnam will be their ability to provide sufficient equipment maintenance. Unforeseen equipment failure during manufacturing can interfere with the production schedule and lead to exorbitant downtime. Additionally, fewer working hours for the equipment and increased repair costs, thus the drop in overall revenue for the company. 

With poor choice and maintenance of equipment, manufacturing companies in Vietnam will charge higher prices for producing client products to boost their revenue back up. 

 

What should you look out for?

Henceforward, it is important to consider the equipment aspect of manufacturing companies in Vietnam. Ensuring companies have enough equipment to measure moulds or products such as 3D scanners, calipers, electroplating equipment, injection machines, etc. 

Keeping their production equipment highly maintained, with improved efficiency will mean more effective operation during hours worked. By keeping equipment well maintained, it has a longer usable life and retains its value longer. 

 

4. Quality Control 

Quality control is the process that ensures customers receive products free from defects and meet their needs. Consumes or clients can be put at risk if products are manufactured in the wrong way. Client’s expect and demand high-quality products. It helps to gain repeat business, maintain relationships, gain new customers/clients from referrals, etc. Data will be collected by RFID systems for the improvement of Quality Control. 

How should manufacturing companies in Vietnam implement Quality Control?

Companies should implement an effective quality control program which includes:

• Define quality standards for each product
• Chose the quality control strategy 
• Characterize the quantity of products/batch tested
• Train employees for quality control
• Create a communication framework for reporting defects and issues

Testing and Measuring Equipment Examples: 

• Chemical Analysis 
• Couloscope CMS Step 
• High-Low Temp. Test Chamber 
• Class Testing
• NSS Testing

Thus, manufacturers with proper quality control procedures in place are less likely to face product recalls or place clients at risk from poorly made products. Product recalls can be costly, and companies tend to avoid it. 

Contact Us

At ODM, we not only specialize in custom promotional product ideas and manufacturing of high-quality products, but we also provide our expertise on informed choices and processes. If you’re interested in learning more about processes such as Quality control, Factory selection and audits, you can read more here. If you’re looking to market a product or require help in producing high-quality products, be sure to contact ODM for our expertise!

 

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Frequently Asked Questions (FAQs)

What is RFID?

The RFID system, Radio Frequency Identification System, is applied to support quality control and production. RFID is using radio frequency (RF) instead of a visual scanner to transfer data between a reader and an item being tracked.

What are the main industries in Vietnam?

Electronics, machinery, steel, food processing, wood industry, textile, footwear, vehicle, rice, coffee, cashews, seafood, vegetable, and tourism.

What is the ease of doing business in Vietnam?

One area where Vietnam actually ranks better than China is in terms of ease of doing business—ranking 69th place to China’s 46th place on the World Bank’s metrics. Vietnam was also among 34 countries that improved the most from 2018 to 2019 on such metrics.