Amidst an increasingly complex global trade environment, Milan Pacific is focusing its Vietnam-centric manufacturing and supply chain strategy on core industries such as sewing, injection molding, and silicone. Through localized production, value chain restructuring, and cross-regional collaboration, we aim to support the rapid expansion of our US-registered private label brands and Southeast Asian markets with greater efficiency, lower risk, and a more competitive cost structure.

I. Background and Strategic Motivation
– Global trade tensions and tariff pressures are prompting companies to seek regional relocation. Milan Pacific has shifted from its previous model of sourcing from China and shipping across oceans to nearshoring production and a regional presence centered in Vietnam.
– Vietnam, with its relatively stable labor costs, well-developed manufacturing ecosystem, and favorable trade agreements, has become a strategic hub for the company’s long-term growth.
– Our core industries (sewing, injection molding, and silicone) have a strong supply base in Vietnam, enabling us to establish long-term partnerships with local suppliers and factories.

II. Current Production Line Status and Capacity Building
– Sewing: We have multiple, flexibly scheduled sewing production lines in Vietnam, covering the production of small and medium-sized items for stationery and related daily necessities. Modular processes and rigorous quality inspection procedures ensure rapid style changes and stable delivery.
– Injection Molding: A recently invested injection molding unit equipped with multi-cavity molds and automated loading and unloading capabilities will be established. This will focus on improving part-to-part consistency and material recycling to reduce defective product rates.
– Silicone: Collaborating with local mold designers and manufacturers will enable the production of silicone parts with high durability and safety requirements, supporting rapid iteration of flexible and elastic components.
– Automation and Process Improvement: Automatic inspection, barcode tracking, and production scheduling systems (MES/ERP integration) will be introduced to enhance transparency and controllability of contract fulfillment.

III. Supply Chain Optimization Strategy
– Localized Supply Network: A directory of localized Vietnamese suppliers will be established, prioritizing the use of locally sourced raw materials and components to shorten delivery times and mitigate transportation risks.
– Cross-border Logistics and Customs Clearance: Designing cross-border logistics routes, integrating ocean shipping and express delivery services, and optimizing port declaration, certificate of origin, and customs procedures to reduce overall costs. – Quality and Compliance: Implement supplier selection and regular audits to ensure that raw materials, molds, and finished products comply with US market regulations and customer requirements.
– Inventory and Demand Planning: A demand-driven JIT/VMI strategy combined with safety stock reduces inventory overstock risk while maintaining high availability.
– Risk Diversification: Establish redundant supply chains with multiple local and regional suppliers to avoid single-point risks and develop contingency plans.

IV. Technology and Knowledge Transfer
– Establish a two-way collaboration mechanism with technical teams in the US and Hong Kong to ensure the rapid implementation of new styles and functional modules on the Vietnamese production line.
– Establish training and skills development programs to enhance local employees’ expertise in sewing, injection molding, and silicone, and promote the implementation of process improvement suggestions.
– Information Management: Implement MES/ERP, barcode systems, and quality traceability to achieve full lifecycle tracking from raw materials to finished products.

V. Quality and Customer Relationships
– Quality First: Strict inspection standards and sample confirmation processes ensure that customer standards are met before mass production begins. – Customer Co-creation: Establish a technical co-creation platform with customers in Vietnam, enabling early intervention in design changes and sample acceptance, shortening time-to-market.
– Brand Support: Leveraging a regionalized strategy for our own brand, we ensure consistent product quality in the US and Vietnamese markets.

VI. Future Outlook and Growth Path
– From Vietnam as our base, we will gradually expand into the entire ASEAN market. Leveraging regionalized production and cross-border e-commerce and distribution partnerships as dual engines, we will increase market penetration and brand influence.
– R&D Investment and Product Matrix Expansion: Deepen the development of stationery and related daily necessities product lines in Vietnam, integrating new materials such as silicone and plastic molding to enhance product added value.
– Supply Chain Resilience: Continuously optimize multi-point supply and transportation routes to establish a more robust global supply chain system and mitigate the risks of geopolitical and trade fluctuations.

Milan Pacific is undergoing a manufacturing and supply chain transformation, centered in Vietnam, focused on reducing costs and increasing efficiency, improving delivery reliability, and enhancing brand competitiveness. Through localized production, cross-regional collaboration, and technological innovation, we will consolidate our manufacturing foundation in Vietnam and support our future development in the Southeast Asian market with a more resilient supply chain.