Manufacturing in Vietnam is increasingly appearing across various industries in Europe, the United States, Japan, and South Korea. But is the production in Vietnamese factories still plagued by the issues reported in the news, such as frequent worker strikes and quality concerns? Is there still unreliable power supply causing production line shutdowns? What is the real state of Vietnamese factories today? As a woman who has been running a factory in Vietnam for six years, I often want to write something to inform everyone about this, but time does not permit. There are always various issues in the factory, and I need to be available to serve my customers, ensuring timely delivery, quality assurance, and cost control within standard limits. Today is a holiday in Vietnam, and the workers have returned home to reunite with their families, allowing me some leisure time to sit in my office and share what the real situation of factories in Vietnam is like and how I operate my PP plastic factory.
My factory primarily produces plastic hollow boards, which can be used in various industries, such as vegetable and fruit packaging boxes, seafood preservation boxes, PP plastic sheets 4X8, PP advertising boards, corona boards, plastic dividers, plastic pallets, plastic boxes, etc. At the time, our largest customer, Amazon, was establishing warehouses globally and required a large quantity of our hollow boards as storage materials for their automated picking system using unmanned robots. The land and labor costs in China were too high for the quoted prices to be acceptable to the customer. Therefore, we explored opportunities in surrounding countries like Vietnam, Thailand, and Malaysia. Eventually, through a friend's introduction, we decided to invest in a new factory in Vietnam to produce hollow boards specifically suitable for unmanned warehouses. The successful production of the factory has helped us establish a strong foothold in Vietnam.
When hiring and employing Vietnamese workers, all our management staff learned about Vietnamese customs, dietary habits, and lifestyle beforehand. Additionally, everyone was required to learn Vietnamese to ensure basic communication. During the recruitment and interviewing process for Vietnamese workers, we prioritized selecting Vietnamese managers for local management. With the training provided by Taiwanese, Hong Kong, Japanese, and Chinese factory owners over a decade ago, today's Vietnamese workers understand that to earn a living, they must work diligently in the factory and adhere to relevant regulations. Although compliance is not perfect, issues like tardiness, leaving early, or striking have significantly improved compared to the past. The workers are very endearing; when they strike, it often means the whole factory takes a break, but four workers are still loading containers and only need to work for two hours to finish their shift. The other workers believe that since the entire factory is resting, those four should not be working to earn overtime pay, viewing it as a betrayal. As a result, male workers may physically confront those four overtime workers. Typically, management intervenes to stop such behavior. However, in severe cases where management cannot dissuade the workers, they call the police. The workers are not afraid of factory management but fear the police, so they comply. However, they may stop working for two to three days, and once tensions have eased, they return to work without explanation, which can be quite perplexing. Yet, once accustomed to this behavior, they come across as somewhat childlike and adorable. No significant losses occur, and management tends not to interfere with such situations. Sometimes we even tease these returning workers, asking, “Hey, you’re back?” to which they usually respond with a silly smile, “Yeah, the factory can't do without me; I have to come back!” Haha, well, maybe they enjoy playing the role of the savior.
In Vietnamese factories, female workers are the main workforce, even for physically demanding jobs. Don’t be surprised; this is the case across Southeast Asia, where male dominance is quite strong. Female workers not only work in factories to earn money but also have to ride motorcycles home during their limited 1.5-hour lunch break to cook for their husbands. If their husbands are in a bad mood or have been drinking, they may even resort to domestic violence. Yet, these kind and gentle Vietnamese women tolerate it all, quietly raising their children and taking care of their families.
Regarding product quality, through years of development, our production line has become fully automated, making us one of the most advanced and largest manufacturers in the plastic hollow board industry. All products are produced using automated machines sourced from Germany, Italy, Taiwan, and Japan. Our raw materials come from Saudi Arabia, Japan, the United States, and South Korea, which greatly ensures the stability of product production while keeping costs within a reasonable range.
There is much discussion about whether Vietnam will replace China as the world’s manufacturing hub. I think it’s important to view this issue objectively and dialectically. China has developed over decades since the reform and opening up, forming a comprehensive supply chain advantage with powerful supporting facilities. Whether it’s labor, electricity, raw materials, or infrastructure, China holds incomparable advantages. Vietnam has made tremendous progress in recent years, with many large companies already starting to source plastic hollow boards, furniture, tiles, and various products from Vietnam. Major companies like Foxconn, Huawei, LG, and Panasonic have established factories in Vietnam, producing quality products. However, in terms of demographic dividends, infrastructure, government governance capabilities, and ensuring a favorable business environment, there is still much work to be done. Furthermore, Vietnam's limited population and lower education levels hinder significant breakthroughs in certain areas. Therefore, while Vietnam is just beginning to vigorously develop its economy, there are still many opportunities, but challenges are also abundant.
If you want to learn more detailed information about the situation in Vietnam, please feel free to contact me via email. If you visit Vietnam, you are also welcome to come to our factory to have a chat and enjoy some tea! I hope to bring you the warmth of family while you are in a foreign land.