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Hi-Tech Manufacturing Talent Analysis(Location and Talent intelligence for Hi-Tech Industries in VIETNAM)

A concept document by Draup

Conceptualized and Developed: May-2020

The objective of the document is to showcase the Hi-tech talent ecosystem in Vietnam with brief overview of top hotspots and cost distribution across job clusters in Hi-Tech industry, this document is intended for companies in China who are planning to de-risk their operations in China amidst COVID and US-China trade war crisis.

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US-China trade tensions, further impacted by the COVID-19, is compelling the Hi-Tech companies in China to decentralize their Manufacturing operations in alternative locations

As Hi-Tech firms plan to de-risk, following

factors should be considered to evaluate

new locations:

Location/Talent intelligenceUnderstanding the overall talent ecosystem, peer’s presence, and skills/expertise of their installed talent

1

Cost AnalysisAnalysing and benchmarking the cost distribution across sub locations and peers

2

Footprint/Accessibility analysis Analysing the market entry strategy, supply chain network of the existing Manufacturing ecosystem

3

Government PoliciesUnderstanding the government incentives, programs, laws, trade tariffs and Corporate taxes

4

Location preference analysis of Companies evaluating alternative manufacturing locations

Hi-Tech companies with manufacturing

in China are looking to de-risk and

diversify their operations by

expanding into alternative locations

Key Reasons to move out from China

Frequent trade tariff changes and uncertainties are disrupting supply chain

US-China Trade War

Heavy reliance on single source heavily impacted the supply chain for global organizations

COVID-19 Pandemic

India Taiwan

Malaysia

Vietnam

China

Thailand

Note: Preference analysis is based on PESTEL factors, recent migration pattern of companies, primary interviews with Draup’s customers and internal stakeholders

Highly favourable

Favourable

Less favourable

Mexico

JapanSouth

Korea

Philippines

Indonesia

AmericasAsia

Notably, Companies

are targeting South

East Asian Location

due to Proximity, low

cost of operations

and existing robust

supply chain network

for Hi-Tech

ecosystem

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Hi-Tech Manufacturing Job roles Taxonomy: Skilled labor is critical for the success of Hi-tech manufacturing; Draup has analyzed 200+ Manufacturing & Production job roles and respective skills across global locations

JOB CLUSTER

Key Job roles

Production Management

Quality AssuranceMachine

OperationsRepair &

Maintenance

Inventory/Warehouse

ManagementElectrical

Manufacturing & Production

Source: Draup’s Proprietary module

• Autodesk• Solidworks• Tinkercad• MATLAB• Minitab• Alteryx

• Root cause analysis

• Radiography Testing

• Magnetic Particle Testing

• Penetration Testing

• CNC Programming

• Mastercam• Geometric

Dimensioning• 3D Modelling• Precision

Machining

• Preventive Maintenance

• Heavy equipment maintenance

• Hydraulic system troubleshooting

• Demand forecasting

• Inventory Accounting

• Data Analysis• Inventory

reporting• Warehouse

planning

• Circuit board soldering

• Circuit board testing

• Electrical system troubleshooting

• Blow moulding• Profile extrusion• Chemical

Handling• Tooling design• Polyolefin

moulding

• Material Handler• Assembler• Fabricator• Manufacturing

Associate• Toolmaker• Extrusion

Technician• Material Control

Coordinator• Material Control

Coordinator

Top skills Required

• Manufacturing Engineer

• Process Engineer• Production

Group Lead• Production

Supervisor• Manufacturing

Team Leader• Manufacturing

Operations Leader

• Operations Data Analyst

• CNC Programmer• Machine

Operator• Machinist• Material Support• CNC Machine

Operator• CNC

Administrator

• Quality and Inspection Technician

• Quality and Productivity Engineer

• Finished Goods QC Technician

• Quality Assurance Associate

• Quality Inspection Manager

• Quality Control Inspector

• Equipment Technician

• Welding Engineer

• Repair Technician

• Repair Operations Lead

• Plant Maintenance Technician

• Depot Service Technician

• Repair Centre Technician

• Electronic Assembler

• Electrical Technician

• Electrical Supervisor

• Electrical Maintenance Specialist

• Inventory Associate

• Warehouse Associate

• Warehouse Manager

• Warehouse operations manager

• Distribution Associate

• Warehouse Executive

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Thank You➢ Manufacturing Talent Size determination: Draup analysed manufacturing talent pool based on 2M+ profiles harvested in 20+ MSAs across all manufacturing companies on Draup platform

➢ Hi-Tech Talent size analysis: Draup segregated the Hi-Tech talent from manufacturing talent pool by funnelling down the Hi-Tech firms

➢ Location Intelligence: Draup tagged the Hi-Tech talent with their respective locations and analyzedthe top hotspots

➢ Cost Analysis: Draup extracted the annual compensation structure (wages to workers) of various manufacturing roles across hotspot location from Draup platform

Note: Similar analysis for different roles, skills and locations can be performed on Draup platform in real time

Methodology followed for Hi-Tech Talent and Location analysis:

Apart from Labor force, Draup has analyzed multiple dimensions such as Ecosystem maturity, Policies, Cost of operations

etc. to shortlist potential Hi-Tech Manufacturing locations. Vietnam, a potential location, is highlighted in this report

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Vietnam Hi-Tech Manufacturing overview: With a massive young workforce, strong sourcing networks and infrastructure, Vietnam is the most favourable location in South East Asia for Hi-Tech Manufacturers

9 MnTalent in Manufacturing

58 MnWorkforce in Vietnam

52 KTalent1 in High-Tech Manufacturing

200,000Tech talent installed in Vietnam

Consumer Electronics Medical Devices

Industrial Automation Semiconductor

Pharmaceutical Biotechnology

Above 200K tech talent can be leveraged to build capabilities around digital technologies like Cloud, IoT, AI, Data Science, etc.

to achieve Manufacturing 4.0 goals

Top Hi-Tech Industries in Vietnam

Talent Landscape in Vietnam

Vietnam is expected to

witness the fastest

economic growth in

Southeast Asia in 2020 due

to US-China trade war

Key reasons for Hi Tech companies to prefer Vietnam

Lower corporate taxes and favourable incentives

Availability of low cost Hi-Tech talent

Stable and less disputed trade relations with US

Proximity to Shipping locations

Minimal unrest and impact caused by COVID Pandemic

Existing robust Supply chain network with China

Source: Draup’s Proprietary module and primary interviews with Draup’s customers and internal stakeholders

1. Other prominent industries not considered in high-tech: Automobile, Aerospace and Defense, Chemical, Food

Processing, Textile, Oil and Gas

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Vietnam High-Tech Manufacturing Hotspots: Ho Chi Minh City and Hanoi are the top preferred location for Hi-Tech companies due to availability of relevant Hi-Tech talent pool and developed infrastructure

Source: Draup Analysis and primary interviews with Draup’s customers and internal stakeholders

52 KHigh-Tech Manufacturing

Talent in Vietnam

~14,500

Manufacturing & Production

~4,500

Production Management

~6,700

Machine Operations

~4,800

Quality Assurance

~7,800

Repair & Maintenance

~3,000

Electrical

~4,800

Inventory/Warehouse Management

Industrial Automation

Pharmaceutical

Consumer Electronics

Top EmployersMajor Manufacturing States & MSAs in Vietnam

Major Hi-Tech hubs Hi-Tech Manufacturing cluster

Sample Deep dive of Hanoi is provided in further slides

Hanoi

• Consumer Electronics• Industrial

Automation

Hai Phong

• Consumer Electronics

Da Nang

• Consumer Electronics

Ho Chi Minh City

• Consumer Electronics• Semiconductor• Industrial Automation

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Annual Labor Cost (Wages to Workers) Analysis: With median cost of $7,000 across manufacturing roles, Hanoi has a better cost advantage over Ho Chi Minh City for manufacturing setup

Manufacturing & Production

Production Management

Machine Operations

Quality Assurance

Repair & Maintenance

ElectricalInventory/Ware-

house Management

Median cost across roles

Ho Chi Minh

City$9,500 $10,400 $8,400 $8,700 $6,000 $10,300 $6,200 $8,200

Hanoi $7,700 $8,800 $6,600 $7,700 $5,300 $8,600 $5,800 $7,000

Da Nang $7,000 $8,100 $6,200 $7,600 $4,900 $8,100 $5,000 $6,100

Hai Phong $7,000 $7,300 $5,600 $7,700 $5,050 $8,000 $4,800 $6,000

Median Cost

across

locations

$8,300 $8,900 $7,000 $8,300 $5,500 $9,200 $5,500 -

Favorable Mid-Favorable

Manufacturing & Production Job roles

To

p V

ietn

am

lo

ca

tio

ns

Source: Draup’s Proprietary module , Above Annual Labour Cost are approximate and rounded-off to the nearest 50; Detailed analysis of Average/median cost for specific experience level can also be done for specific locations

Draup conducted an extensive analysis to study the compensation (annual) structure of Hi-tech manufacturing talent in Vietnam

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Sample Deep dive – Hanoi: Hanoi, the capital of Vietnam, is outpacing the country’s financial hub, Ho Chi Minh City, in terms of investment from global Hi-Tech companies post COVID outbreak

Hanoi High-tech hotspots

Total High-Tech Manufacturing & Production Talent

~ 18,000

Median Annual Salary for Manufacturing Jobs

~7,000 USD

Primary Industries Consumer Electronics

Nominal GSDP# annual growth rate

7.2%Electronics*

67%

Medical Device

5%

Industrial automation

8%

Pharmaceuticals10%

Others10%

Hi-Tech Manufacturing Workforce by Industry Cluster

Area Insights

• Hanoi is Vietnam’s top FDI destination with more than US$5.3 billion in foreign direct investment (FDI) projects in the first half of 2019

• Manufacturing and processing industry accounts for the majority of investment capital in Hanoi, representing 37.2 percent of the total FDI approvals in 2018

• The city is home to at least 3,530 tech companies and becoming an R&D hub with increasing FDI inflows from other industries

Top Companies Key Workloads

Design/inspection of wireless products such as: LTE,RF,Zigbee modules, Power Circuit, ADC/DAC converter, Terminal equipment

Production of power and distribution transformers

Factory production of laser printers Canon Inc

Assembly of flagship Galaxy S20 phone

#GSDP is Gross State Domestic Product, data for year 2018-2019

Overview of Hanoi High-tech Manufacturing

Source: Draup’s Proprietary module, secondary sourcesNote: Broader analysis of Talent ecosystem, University ecosystem, and Peers for any location can be provided using Draup platform

FPT SoftwareVTTEK

Vinfast LLC

Cau Giay

Robert Bosch

VNG Corporation Bkav Electronics

Qorvo, Inc

Dolphin Technology

ABB

Intel Corporation

Hoan Kiem

Foxconn

Bac Ninh

Qorvo, Inc

Canon

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About Draup

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Draup uses Machine learning models to perform prior analysis and can replicate it on a broader level for any job roles/skills across functions

Learning & Development

University Relations

Mergers and Acquisitions

Digital Transformation

Compensation & Benefits

Strategic Workforce Planning

Recruitment

Peer Intelligence

Draup Capabilities & Data Assets EMPOWERS DECISION MAKING IN

ROLES & SKILLS TAXONOMY

DIGITAL IMPACT ON TRADITIONAL ROLES

CAREER PATH PREDICTOR

PEER BENCHMARKING

LOCATION INTELLIGENCE

Explore Diverse Job Roles,

Locations and Ecosystem

Insights

PROFESSIONAL PROFILES

TALENT INTELLIGENCE

UNIVERSITY INTELLIGENCE

COURSES/ CERTIFICATIONS

and diverse other use cases…

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Draup for Location intelligence: Draup analyzes 2,500+ global locations to help global hr leaders in understanding data driven insights related to Talent/skill landscape, cost, demography and peer ecosystem

50M+ DIGITAL AND

DIGITALLY

INFLUENCED

PROFESSIONALS

65M+JOBDESCRIPTIONS

4M+CAREER PATHS ANALYZED

52MACHINE LEARNING MODELS DEYELOPED

10M+DATA POINTS ANALYZED

100+Labor Statistic database

1,000+CUSTOM TALENT REPORTS

30,000SKILLS

7,000+DIGITAL TOOLS& PLATFORMS

100,000+COURSES

2,500+LOCATIONS

7,000+UNIYERSITIES

JOB ROLES

4,500+ PEER GROUP COMPANIES

75,000+INDUSTRIES

28

30,000+UNIYERSITY

PROFESSORS

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