Vietnam’s Ministry of Labor (MOLISA) has released the text of proposed technical standards that, if enacted, would apply to companies involved in commercial forging – a key component of heavy manufacturing and related production. Outlined at the circular level, details of the proposal were made public on August 23rd and have been issued as a means of improving safety standards for workers within the country.
Understanding Technical Standards
Under the proposed circular, the following aspects of the forging process are set to be standardized and have been detailed extensively within the public draft:
- Requirements for the structural parts of the control system.
- System requirements for hydraulic cooling lubrication
- Requirements for pipes and pressure vessels
- Requirements for shielding
- Requirements for working platform and stairway work for workers
- Electrical safety requirements
Exposure and impact of these changes will likely be dictated by the current practices of companies involved in forging.
Ensuring Best Practice
While the primary purpose of MOLISA’s proposal is to improve technical standards within heavy manufacturing, a number of general guidelines have been included which will impact the manner in which forging is carried out within Vietnam. General safety regulations outlined in the circular include:
- Regulations to ensure safety equipment forging presses in the manufacture, import prior to the market
- Regulations to ensure safety equipment export forging presses
- Regulations to ensure safety equipment forging presses in the market circulation
- Prescribed safety equipment forging presses during use
Implications for Investment
With a growing manufacturing base, and an increasing ability to attract foreign investment in more capital intensive stages of the value chain, technical standards and general regulations alike will be of importance for a variety of producers in Vietnam. For those currently invested, safety standards should be reviewed to ensure that compliance can be achieved.
Alternatively, those considering investment and seeking to utilize forged products should pay close attention to standards in order to assess the viability of different setup options. Depending on the nature of a given business, standards could impact the profitability of vertically integrating supply chains and therefore dictate methods of market entry.
This article was first published September 2016.
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