Managing Labor Disputes by Easibag Vietnam Co.
I. Introduction of the company
Easibag Korea
EasiBag Inc., a Korean bag manufacturing company, was founded 1986 in Kyungki-do, Korea. EasiBag is now operating woth total assets worth 14,832 million won, net assets worth 8,840 million won and employing around 140 people. The company exports different kinds of bags to Europe Japan and Saudi Arabia.
In 1992 facing rising demand from Japan and Europe and on account of rising labor costs in Korea and difficulties in securing domestic labor, EasiBag had to expand its operations and was planning to open a manufacturing plant abroad. After having done intensive research about possible countries, the management decided to open a subsidiary in Vieynam.
There were several reasons why they chose Vietnam:
Vietnam offered many opportunities including cheap abundant labor and an open foreign-exchange management policy. In addition to that, there was a geographical benefit since Vietnam is not that far away from Korea and Japan, too. Moreover, Easibag estimated long-term opportunities in the domestic market development.
However, there were also threats by choosing Vietnam. For example one of the major threats was coming from the unfriendly attitude towards foreigners and discrimination. Furthermore, there was a lack of skilled labor, high bureaucracy, weak economical development and an insufficient infrastructure. The company also noticed that the financial service sector was weak and the insurance-sector non-existent.
Still, the management weighted the opportunities more than the threats and regarded the country as the most profitable.
Easibag Vietnam Co.
In 1992, Easibag Inc. established a local subsidiary in the Guchi area in Ho Chi Minh City, Vietnam. The subsidiary was first established as a joint venture with the Vietnamese partner KEE (Kefigeration Engineering Enterprise), because this mode of entry seemed the most suitable since Vietnam’s investment climate was yet insecure and Easibag had no experience
Easibag Korea
EasiBag Inc., a Korean bag manufacturing company, was founded 1986 in Kyungki-do, Korea. EasiBag is now operating woth total assets worth 14,832 million won, net assets worth 8,840 million won and employing around 140 people. The company exports different kinds of bags to Europe Japan and Saudi Arabia.
In 1992 facing rising demand from Japan and Europe and on account of rising labor costs in Korea and difficulties in securing domestic labor, EasiBag had to expand its operations and was planning to open a manufacturing plant abroad. After having done intensive research about possible countries, the management decided to open a subsidiary in Vieynam.
There were several reasons why they chose Vietnam:
Vietnam offered many opportunities including cheap abundant labor and an open foreign-exchange management policy. In addition to that, there was a geographical benefit since Vietnam is not that far away from Korea and Japan, too. Moreover, Easibag estimated long-term opportunities in the domestic market development.
However, there were also threats by choosing Vietnam. For example one of the major threats was coming from the unfriendly attitude towards foreigners and discrimination. Furthermore, there was a lack of skilled labor, high bureaucracy, weak economical development and an insufficient infrastructure. The company also noticed that the financial service sector was weak and the insurance-sector non-existent.
Still, the management weighted the opportunities more than the threats and regarded the country as the most profitable.
Easibag Vietnam Co.
In 1992, Easibag Inc. established a local subsidiary in the Guchi area in Ho Chi Minh City, Vietnam. The subsidiary was first established as a joint venture with the Vietnamese partner KEE (Kefigeration Engineering Enterprise), because this mode of entry seemed the most suitable since Vietnam’s investment climate was yet insecure and Easibag had no experience