Kizuna: Please introduce your business in Vietnam
Mr. Uegaki: We're EPE (Export Processing Enterprise) and assembling the imported parts from Japan
and make finished products in Vietnam after inspecting the quality to export back to JPN.
Kizuna: Please introduce your products
Mr. Uegaki: The parts we're currently manufacturing (assembling & inspection) in Vietnam
are the small valves which we're doing mass-production in Japan and shifted the production from JPN to VN partially.
Kizuna: What is your outstanding points comparing with the other competitors?
Mr. Uegaki: As clients use our products in many different kinds of industry, they need different specification
depending on the industry such as quality of material, shape, size, function, price etc….
We will design for the clients from even one part to meet their request.
I think there's not so many companies to support clients like this.
Kizuna: Why did you decide to invest in Vietnam?
Mr. Uegaki: Currently our company is located in Japan.
When we consider of the future economy, we could expect the growing market of South East Asia including Vietnam.
The reason why we decided to invest in Vietnam is because Vietnam has a similar culture as Japan's
Japanese-friendly, Vietnamese workers are dexterous, and hardworking
(As our products are very small parts, it's hard to assemble if the workers are not dexterous and careful)
We thought that we couldn't find these all factors in the other countries.
Also the main religion of Vietnamese is Buddhism, the percentage of each religion in Japan is also similar to that in Vietnam.
When we reviewed all collected information before investment, we decided it's the best place for us to make company in Vietnam.
Kizuna: Why did you decided to choose the South Vietnam?
Mr. Uegaki: We're not big enterprise, but SME.
After taking a look at the North, Middle and South Vietnam, we found that there're many SMEs in the South Vietnam.
When we try to sell our products in HCMC in the future, it'll be easier for us to do so thanks to the abundant of SMEs in the area
When we purchase the material in Vietnam, it would be easier for us thanks to that as well
Seeing the scale of our own company, we thought that the south Vietnam is the suitable place to invest.
Kizuna: How long did it take for you to decide to invest?
Mr. Uegaki: It took around half year
Mr. Uegaki: When we visited Kizuna and other Industrial Park, we feft that what Kizuna has to offer was perfect for us.
It takes less than an hour for us to commute from HCM to the factory
Compared with the other industrial parks, Kizuna provides better support services.
If we need the larger factory, we would compare the rent fee with the other Industrial Parks which will takes us more time for consideration.
However, small sized factories like ours (290m2) are in great demand, thus we find it hard to find
a place such as Kizuna where it meets with all of our requirements, including the acceptable distance from city center which results in easier access for clients and workers.
We thought we would miss our chace if we wouldn't make the decision then. That's the reason for our quick decision.
Kizuna: Where are you living now?
Mr. Uegaki: I'm living in District 7 (Phu My Hung). It takes only 30-40 minutes to come here from Dist 7 by motorcycle.
Kizuna: Did you have any difficulties after starting business in Vietnam?
Mr. Uegaki: 1 year already passed since our local enterprise was established in Vietnam.
As our company style is EPE(Export Processing Enterprise), the way to do business is different from that for non-EPE.
We sell our finished products to Japan by USD and get paid in USD. We didn't know how to handle the different currency.
After importing the parts from Japan, we export the finished products to Japan. We were also confused how to handle the defective products with EPE condition.
Everything was new and confusing including the way to store the parts as EPE.
Also we were confused how to recruit workers and where to recruit workers from.
There's no company rule even after recruiting workers.
We even didn't know how to make company rule and how to set up the salary. Everything was new for us.
Kizuna: How did you solve these problems?
Mr. Uegaki: It's one of the reasons why we chose KZN.
Thanks to the after-sales services of Kizuna: Kizuna helped us recruiting workers for free of charge and advised about company rule and salary system.
As for the questions related with EPE business, we asked accounting and consulting companies which were introduced by KZN.
Kizuna: Don't you have any more problems now?
Mr. Uegaki: We don't have any problems right now
If we were to sell the products to the domestic market, we would have many problems even until now
however our business is just between Japan and Vietnam, we might not have much problems like the other companies.
Kizuna: How many workers do you have now?
Mr. Uegaki: 8 people both from Long An and HCM
Kizuna: What is your goal after 5 years?
Mr. Uegaki: As we're assembling the imported parts from Japan, doing inspection to make them as finished products
and send them back to Japan, we still cannot call ourselves a full-fledged "factory" yet.
We'd like to change it from the current "Working Space" status to full-fledged "Factory" in the next 3-5 years.
When we purchase the parts from Vietnamese supplier to make our finished products
we will need the staff and internal system to control the quality of the products in Vietnam.
We're planning to increase the production volume to 3-4 times after the next 5 years operation.
At that time, we will need a larger working space to accommodate with such a big volume.
To increase the production volume to 4 times of what it is while reducing the cost, we will need to use the parts which are manufactured in Vietnam.
When we can well organize the human resource and system to control the quantity, I think we can change our factory from "Working Space" to the real "Factory" status.
Kizuna: Do you sell your products only to Japan?
Mr. Uegaki: We're also selling to the other countries. In China, we have factory to sell to the domestic market only.
Beside China, for other countries such as Thailand, Taiwan and Indonesia
the products sold there are manufactured in Japan.
Kizuna: Please give us a short word for the future investor ?
Mr. Uegaki: Vietnamese is Japanese-friendly and its workers are skilled and hardworking
Also, Vietnam is among the best places where Japanese can live safely.
You can hardly find any other country which has such perfect condition for Japanese to do business and live like you can with Vietnam.
You can understand what I am telling you now when you come to Vietnam and experience it for yourself.
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