PRODUCTION & INVESTMENT
You are considering building a new production in Southeast Asia? For many companies, Vietnam offers the perfect conditions within Asia. Low labor costs, high productivity, central location in the heart of ASEAN, good infrastructure and high economic and social stability. BDG Vietnam helps you to realize these potentials in your manufacturing project.
Katrin Schröder - Project Management, SWAROVSKI AG
BDG supports multinationals as well as medium sized enterprises in rigorously checking every aspect relating to the customers investment in Vietnam. Our interdisciplinary production team consists of project managers, technical experts, analysts, lawyers and interim managers to make sure that we have you covered, from market analysis to production implementation.
WHY TO BUILD A FACTORY IN VIETNAM?
Labor Costs and Productivity
Due to rising labor costs in China, many companies are forced to relocate their production. Vietnam's wages are significantly lower than those in China and in other Asian countries. However, it is important to understand where and with whom these benefits can be realized.
Many companies miss out on huge cost opportunities by building their production in over-invested provinces. Between the South and the Center of the country, the differences in wages could be up to 50% among established industrial areas.
The Vietnamese are also considered to be the Prussians of Asia – With a relentless desire for a better future. However, without clear leadership, meaningful incentives and deliberate recruitment, the results remain below expectations. One must adapt continuously to take advantage of this young and driven work force.
Vietnam is a market of almost 90 million people, directly adjacent to other strategically important markets of Thailand and China. Currently, Vietnam is building comprehensive Free Trade Agreements and broad logistical access with both countries.
The modernization of Vietnam's infrastructure is happening rapidly in recent years. In terms of road coverage, Vietnam is already superior to countries like Thailand and the Philippines. Nevertheless, there are still some bottlenecks especially in urban centers.
Vietnam is considered to be one of the most politically stable countries in Asia, with a sound economic policy open towards the West.The economy develops steadily and did so even during the 2008/2009 economic crisis.
Working with local authorities is still very difficult for many foreign companies. However it is even riskier to engage with obscure middle men and their promise of "simple solutions".
OUR SERVICES FOR YOUR PRODUCTION
Your company wants to build its own production facility in Vietnam. We support your project and decision with a broad range of services, ranging from a quick "Check-The-Market Assessment", to detailed macro-economic studies and due diligence to company foundation, interim management and employee selection.
To support the development of your production facility in Vietnam, our consultants draw not only on 6 years of experience supporting direct investment of multinational companies and medium-sized firms, but also on excellent networks in politics and industries.
Our approach is to pragmatically support you throughout all phases, from initial planning to implementation on site.
Our goal is to provide you with the optimal mix in terms of location, suppliers, employees and infrastructure in order to realize maximum benefits.
Your Questions about Producing in Vietnam
- How do Vietnam's strengths fit into the overall business strategy of our company?
- Under what conditions and at what costs is the creation of a local unit possible?
- How can we effectively control all business expansion activities on the spot?
- How can we find reliable business partners to purchase materials and distribute our products?
- How do we ensure that we recruit the right people in Vietnam's complex and volatile job market? How do we quickly and effectively manage new employees?
Contact Us for further questions. We provide you with the answers.