Yusson Industries Builds 'One-Stop' Model in Mechanical Engineering and Supporting Industries

Currently, Vietnam has over 7,000 mechanical engineering companies and 5,000 supporting industry enterprises (SI). However, due to limited capital, technology, and human resources, most of these businesses only handle certain stages of production or provide one type of service. To obtain a complete product, customers must connect with multiple suppliers, creating a complex and inefficient supply chain that results in high time and costs.

To overcome this limitation, Yusson Industries Group (a member of the Yusson conglomerate) has implemented a strategy to develop mechanical engineering and supporting industries on a large scale, investing systematically, diversifying products and services through a "one-stop" model, and also playing a leading role in the supply chain. This strategy creates opportunities for small and medium-sized enterprises (SMEs) to participate in the group’s production chain.

Systematic Investment to Build an Integrated Production Chain

With nearly 20 years of experience in mechanical manufacturing and supporting industries, Yusson Industries has a strong advantage in advanced technological systems and closed production processes that meet international standards. The company also has substantial resources to expand its scale and diversify products according to customers' specific needs. This is the foundation for building the "one-stop" model, offering integrated solutions for R&D, production lines, machinery and equipment, mechanical products, supporting industries, and large-scale manufacturing serving various fields, including automotive, industry, agriculture, forestry, mining, construction, and civil engineering. This model aims to meet the demands of both the domestic and export markets.

The model is likened to a "food market," offering a variety of products to meet customers' diverse and specific needs.

Developing Technology and Digitizing Production

According to Mr. Đỗ Minh Tâm, CEO of Yusson Industries, alongside the shifting global supply chain, the demand for "turnkey" models is becoming increasingly popular among buyers. To meet the diverse needs of customers, the group will develop a comprehensive value chain that includes product R&D, manufacturing and processing, installation, and operational transfer and maintenance.

"Recently, we have received numerous orders from foreign-invested and international enterprises, with many partners placing orders for 'combo' production, which includes molds, plastic injection, mechanical parts, painting, assembly, and packaging, rather than dealing with 4 or 5 different suppliers as before," Mr. Tâm shared.

The company recognizes that customers' primary concerns are quality, price, and delivery time. To optimize the effectiveness of the "one-stop" model, Yusson Industries will invest in technology innovation, upgrade surface treatment lines, large-scale mold processing and production lines, as well as advanced machinery and equipment for mechanical manufacturing. Additionally, the company will update design and simulation software for R&D, material testing, and accelerate the digitization of management processes to ensure strict quality control at every stage of production.

Opening a Modern Mechanical and R&D Center

In December 2022, Yusson Industries will inaugurate its Mechanical Center at the Yusson Chu Lai Industrial Park in Quảng Nam. This will be one of Vietnam’s leading mechanical centers, providing materials, including steel billets, non-ferrous metals, various molds, as well as offering mechanical processing and surface treatment services. It will also manufacture semi-trailers, heavy components, and specialized equipment to serve multiple industries.

At the same time, the group will begin construction on a state-of-the-art R&D center equipped with modern facilities and software, staffed by over 1,000 experienced experts and engineers.

This center will focus on product R&D to meet market trends and customers' specific needs, as well as material testing and product validation. The opening of these two centers will significantly boost Yusson Industries' competitive advantage and enhance the effectiveness of the "one-stop" service model.

Collaborative Development of the Supply Chain

Through the "one-stop" model, Yusson Industries creates opportunities for small and medium-sized enterprises to participate in its production chain through five forms of cooperation:

1. Manufacturing and processing products for Yusson Industries.
2. Partnering in R&D, with Yusson handling production.
3. Managing R&D, production, and supplying products to enterprises with established markets.
4. Jointly investing in factory construction.
5. Consulting, upgrading management, training staff, and providing industrial solutions.

The company will also invest in industrial parks specializing in mechanical manufacturing and supporting industries in various regions, fostering sustainable development for Vietnam’s industrial sector.

On November 26, during the Action Program Conference for the Socio-Economic Development of the Southeast Region, Yusson Industries and the Bình Dương People's Committee signed a memorandum of understanding to build a Mechanical and Supporting Industry Park worth VND 26,000 billion (over 1 billion USD). The group’s total investment in the coming years will reach 1.5 billion USD.

"We expect that the 'one-stop' model will align with global procurement trends and supply chain shifts, creating favorable conditions for Vietnamese enterprises to integrate deeper into the international production network," emphasized Mr. Đỗ Minh Tâm.