Vietnam’s Rising Appeal: A Hub for Industrial and Logistics Operations
Last year marked a significant milestone as SLP celebrated five years of operations in Vietnam. During this period, the company has successfully launched seven industrial and logistics facilities, providing vital support to both international and domestic manufacturers. This development underscores Vietnam’s strategic importance in the global supply chain landscape, attracting considerable foreign direct investment (FDI).
Infrastructure and Execution: The New Competitive Edge
Vietnam’s allure isn’t solely about enticing numbers in investment and trade turnover; it’s primarily rooted in execution. SLP highlights that enhanced infrastructure, streamlined processes, and coordinated industrial development are crucial for businesses moving quickly from decision-making to operational deployment. In today’s volatile global market, where speed and certainty are paramount, Vietnam is increasingly perceived as a place enabling rapid expansion.
Real Insights from Industry Leaders
While many companies describe Vietnam’s advantages in broad terms, firsthand experiences from overseas firms paint a clearer picture. For instance, Ennoconn Vietnam, a Taiwanese-funded electronics manufacturer, found that entering the Vietnamese market is a relatively frictionless process.
Cheng Chien Bang, the CEO of Ennoconn Vietnam, elaborates on this aspect: “The country offers a comparatively low-friction entry environment—regional manufacturing norms are familiar, coordination is straightforward, and the market’s geographic position supports effective supply chain planning.” This advantage allows businesses to focus on scaling rather than decoding new operational contexts.
Strategic Manufacturing in Northern Vietnam
Another notable example comes from Dayin Vietnam, a Taiwan-based injection and plastics manufacturer. Lee Ho Hsiang, its vice general manager, underscores the strategic relevance of northern Vietnam, driven by its established manufacturing clusters and efficient logistics corridors.
“Proximity to logistics routes and the Chinese border aids Dayin in maintaining efficiency in its operations, especially as production volumes increase. This is vital for effective supplier coordination,” said Hsiang.
The Challenge of Execution Post-Decision
As Vietnam’s market fundamentals continue to strengthen, the challenge increasingly shifts from choosing the right location to successful execution. For many new entrants, speed to market is critical, determined by factors like facility readiness, compliance, and the technical fit of equipment.
This operational readiness becomes particularly significant for manufacturers utilizing heavy equipment or automated production lines, where even slight mismatches in specifications can lead to extensive delays. Dayin’s operational requirements, which include cranes and machines with significant capacity needs, exemplify how facility design becomes an operational risk rather than merely a real estate concern.
The Importance of Local Partnerships
With the complexities of executing operations in Vietnam, local partnerships become essential. A company’s success is often influenced by the quality and reliability of the partners they choose. This is where SLP steps in, committing to being the partner of choice for businesses entering the Vietnamese market.
Dinh Hoai Nam, head of Commercial at SLP, explains the company’s mission: “Our goal is to deliver world-class industrial and logistics facilities that meet the highest standards of quality and reliability. Beyond just providing ready-to-operate infrastructure, we are there for our clients every step of the way, from initial market entry to full operational readiness.”
Vietnam as a Global Business Destination
The strong trade performance and steady investment inflows demonstrate Vietnam’s growth as a beacon for global businesses. However, this reputation as a desirable business destination extends beyond mere statistics.
Nam articulates this point by noting, “The differentiator for companies entering Vietnam will be execution—how well they align their strategy with timelines, facilities, and the realities on the ground. Those who act decisively and collaborate with the right local partners will be well-positioned to benefit from Vietnam’s next wave of growth.”
Infrastructure Support for Accelerated Growth
SLP focuses on delivering operationally-ready industrial infrastructure, enabling companies to expedite their setup and transition into production. Through technology-led solutions that address modern supply chain challenges, SLP is playing a pivotal role in facilitating businesses to thrive in Vietnam’s evolving market landscape.
With backing from Ares Management Corporation, a global alternative investment manager, SLP is geared towards helping companies navigate the complexities of establishing operations in Vietnam seamlessly.
As this vibrant country continues to evolve, it promises growth opportunities and a supportive environment for companies ready to make their mark in Southeast Asia.