Vietnam Trends
Advantages/Superiority of WSE Production from the Japanese Perspective – Part 1
For Nihon SUN-S, WSE production is not merely one of its overseas manufacturing bases. It holds an extremely strategic position in supporting the company’s global strategy, cost competitiveness, and stable supply system.
Its advantages are diverse, but can be broadly summarized in the following key points:
1. Securing Cost Competitiveness and Improving Productivity
Vietnam offers a significant advantage in terms of relatively low production costs, including labor and land expenses, compared to neighboring Asian countries.
While domestic production in Japan inevitably involves a high-cost structure, the Vietnam factory enables substantial cost reduction in manufacturing.
This enhances the price competitiveness of final products, allowing access to broader market segments and maintaining an edge in increasingly fierce market competition.
Furthermore, the Vietnam factory has continuously worked to improve productivity through years of accumulated manufacturing know-how and technical training for local employees.
Building efficient production lines and reducing defect rates not only contribute to cost savings but also help ensure timely delivery, thereby improving customer satisfaction.
2. Thorough Quality Control and Stable Supply System
One of the greatest strengths of the Vietnam factory is that it is operated as a “wholly owned factory” of Nihon SUN-S.
This significantly reduces the risk of quality inconsistencies often seen with outsourced production.
By implementing a production management system based on Japan’s strict quality standards and conducting regular quality audits and employee training, the factory is able to maintain a quality level equivalent to that of domestic factories.
This is especially crucial for gaining customer trust in workwear products that directly affect worker safety and comfort.
Additionally, depending on investment decisions, maintaining multiple production bases—both domestic and in Vietnam—rather than relying on a single site is extremely important from a Business Continuity Planning (BCP) perspective.
In the event of production stoppages due to natural disasters or geopolitical risks, the ability to continue or supplement production at the other site helps reduce supply chain disruption risks and ensures stable product supply.