Ohnoseiko Vietnam opens second factory in Hoi An – Two-factory strategy for new growth phase

Ohnoseiko Vietnam officially operates its second factory in Hoi An from January 2026, marking a significant step in its strategy to expand precision mechanical processing capacity in Vietnam.

More than just expanding capacity, the two-factory model (Ho Chi Minh City – Hoi An) is designed to restructure the production model, enhance competitiveness, and gradually turn Vietnam into a strategic production base within Ohnoseiko's global system.

Context: Rising land prices and the need for strategic repositioning

Ohnoseiko Vietnam was established in 2013 in the vicinity of Ho Chi Minh City, specializing in precision mechanical component processing, particularly strong in single-piece, high-precision, and complex shape machining.

After more than 10 years of operation, the Ho Chi Minh City factory faced a shortage of production space. Expansion plans were repeatedly delayed due to factors from the industrial park, while land prices sharply increased from approximately 120 USD/m² to 250 USD/m².

Expansion in Ho Chi Minh City gradually became inefficient in terms of investment.

Concurrently:

• - Demand from the Northern market increased sharply.
• - Operating a single facility in the South meant that access and support for customers in the Northern region were not truly optimized.
• - Price competition with Chinese enterprises became increasingly fierce.
• - The trend of restructuring global supply chains to reduce dependence on China also prompted businesses to proactively build multi-regional production capabilities in Vietnam.

In this context, the Central region – especially Da Nang and Hoi An – was chosen due to its balanced location between Hanoi and Ho Chi Minh City, favorable for a nationwide development strategy.

Hoi An Factory – A strategic base for raw material processing and large-volume orders

Unlike the Ho Chi Minh City factory, the Hoi An factory is not merely an expansion in scale, but is planned with distinct production functions and a clear strategic orientation.

Functional separation between the two factories

- Ho Chi Minh City Factory

Processing difficult, high-technical requirement parts

Handling processes such as heat treatment, plating

Single-piece, diverse types, urgent orders

- Hoi An Factory

• Focus on raw material processing using machining centers
• Serving medium-batch and large-volume orders
• Optimizing processes to enhance price competitiveness

=> This strategy helps: Clearly define equipment investment direction, standardize processes for each segment, increase cost efficiency, reduce reliance on outsourced processing from China.

This is an important step to enhance precision mechanical processing capabilities in Vietnam, while increasing proactivity in the global supply chain.

Maintaining “Japanese Quality in Vietnam”

Despite the separation of production roles, quality standards between the two factories remain unified.

The Hoi An factory is invested with: 3D measuring machines (CMM), high-precision inspection systems, quality management processes equivalent to the Ho Chi Minh City factory

Long-term vision: Vietnam becomes a strategic hub

The Hoi An factory does not merely solve space or cost problems.

This is a stepping stone for a long-term strategy: Increasing automation rates, developing new products, expanding into European and American markets, elevating Vietnam to a strategic production center

In the next 10–20 years, Vietnam could become an important base in Ohnoseiko's global network. Ohnoseiko Vietnam's opening of its second factory in Hoi An marks a new phase of development for the precision mechanical processing enterprise in Vietnam.