When you set up and run a new Vietnam manufacturing plant, there are many essential factors you need to keep yourself informed. You can enhance the likelihood of your manufacturing business becoming a successful one when you have addressed these factors and implement the proper plans in place.
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The following are the important elements to consider before starting with the construction of a manufacturing plant in Vietnam.
7 Things to Consider before Starting a Manufacturing Plant in Vietnam
1. Determine the Capital and Expenses
Financial resources are always one of the first things investors must consider before building a Vietnam manufacturing plant. Therefore, investors need to come up with a budget plan with necessary costs included: lease, utilities, transportation, salaries, and many other costs that may incur during the production process. Then, investors also have to make sure that the capital they have is sufficient for factory set up and operation.
2. Identify if the Plant Location is Suitable for Production Process
The location of a manufacturing plant can impact the production process significantly. You must determine if the location is appropriate for the smooth running of your production and if it enables convenience for transporting your finished products. The plan location must enable a seamless flow of the entire process from start to finish.
3. Know the Workforce
Every industry needs staff with specific skills to fill the positions. You need to know what kind of talent, qualification, and skill you need in your employees and only go ahead with recruiting them. Determining the type of workforce you need can help you allocate your financial resources appropriately.
4. Figure Out the Machinery Structure
Vietnam manufacturing plants require machines for production. You shall calculate the number of machines necessary and then only decide which factory you should rent. Small factories are inexpensive but they have only a few machines and small machines. Big factories, on the other hand, have more and bigger machines but more expensive. Therefore, you should know the machinery structure your business requires and choose the one that can increase production line efficiency.
5. Find Reliable Suppliers
As a smart investor, you must meticulously get into the details of supplier information. Only suppliers that provide quality products or materials shall have a long-term partnership with your business. Unreliable suppliers can disrupt or even halt your manufacturing process, leading to a huge loss of time, resources, and productivity.
6. Analyse Customers’ Requirements
Carrying out comprehensive market research can help you identify target customers’ needs and requirements. When you know who your target audiences are and what they need, then only will you know what to produce and the quantity to produce.
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7. Ensure Legal Compliance
Legal compliance is an important matter to take care of for starting any kind of business. Do check out if your Vietnam manufacturing plant has the right license and permit to do certain types of businesses, and if your processes comply with the current Vietnamese laws. See Cekindo’s Legal Compliance Services
How Cekindo can Assist
By allowing Cekindo to help you in establishing your Vietnam manufacturing plant, you are guaranteed to have a good start in doing business in Vietnam. All we need to commence your company registration process is the type of your legal structure, your business name, and your investment project description.
Should you decide to set up a Vietnam manufacturing plant, our business experts can help you reserve a company name in a short time, and proceed with the business registration subsequently and efficiently. Cekindo is your great partner to assist you through the whole journey of establishing and operating a manufacturing business in Vietnam – from start to finish.
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