Operational readiness gains importance as manufacturers expand into Vietnam

As Vietnam attracts growing manufacturing investment, companies are placing greater emphasis on operational readiness to ensure new factories can begin production efficiently.

As manufacturers expand production into Vietnam, building a factory is no longer the biggest challenge. Increasingly, the key question is whether a new facility can achieve stable operations from its first day of production.

For years, manufacturers planning new investments focused primarily on factory location, construction schedules and capital spending on production lines and equipment. However, as global supply chains continue to shift and Vietnam attracts growing manufacturing investment, operational readiness has become an equally critical priority.

Representatives of the project team during the implementation phase ahead of the factory's official operations.

Representatives of the project team during the implementation phase ahead of the factory's official operations.

According to Vietnam's Ministry of Finance, realized foreign direct investment (FDI) reached USD 27.62 billion in 2025, the highest level in five years. Nearly 83% of that investment flowed into manufacturing and processing industries, reinforcing Vietnam's position as an important hub in global production networks.

Yet completing a factory does not necessarily mean a business is ready to begin operations. In addition to installing production lines, companies must establish governance systems, ensure regulatory compliance, train employees and integrate the new facility with their global operating networks.

"Many companies devote most of their resources to factory construction, equipment and recruitment. However, the factors that determine whether operations can run smoothly are often behind the production line, including management systems, operating processes and integration with the group's global network," said Ryohei Oda, General Director of ABeam Consulting Vietnam.

The issue is particularly important for multinational manufacturers operating in Vietnam, where new facilities must comply with local accounting, tax, e-invoicing and reporting requirements while remaining aligned with regional and global operating standards.

Rather than waiting until construction is completed, many manufacturers are now developing their management and operational platforms in parallel with factory construction to shorten the time required to begin production.

One recent factory implementation project in Vietnam reflects a broader trend among foreign-invested manufacturers: adopting globally standardized management platforms instead of building entirely new systems from scratch. This approach helps ensure consistency across production facilities in multiple countries while allowing the systems to be adapted to Vietnam's accounting regulations, e-invoicing requirements and other legal compliance obligations.

By leveraging existing global platforms, companies can reduce implementation time, simplify project execution and maintain consistent operating standards across their international manufacturing networks. Completing these systems before production begins also enables businesses to test workflows, train employees and ensure the factory is fully prepared for commercial operations once production lines are commissioned.

According to Oda, this approach is becoming increasingly common in new manufacturing investments.

"In the past, companies typically implemented management systems after the factory had been completed. Today, these foundations are established from the beginning so that the plant can operate effectively as soon as it starts production," he said.

As Vietnam continues to strengthen its appeal as a destination for global manufacturing investment, competitive advantage increasingly depends not only on investment size or production capacity, but also on how quickly a new facility can reach stable and efficient operations.

With production expansion timelines becoming ever shorter, factory readiness is emerging as a strategic capability for international manufacturers investing in Vietnam.

Le An
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