Warren Buffet’s Berkshire Hathaway company leases factory in southern Vietnam

Marmon Fastener Company, a subsidiary of Berkshire Hathaway’s wholly-owned Marmon Holdings, will manufacture screws for the North American market at a ready-built factory in Dong Nai Province, according to property services firm Savills Vietnam, which helped with the deal.

Marmon Holdings’ first investment in Vietnam comes after two years of studying the country to find the best location, according to its chairman, Steve Semmler.

American Marmon Fastener's factory in Dong Nai Province. Photo courtesy of Savills Vietnam

Leasing a ready-built facility reduces deployment time and allows the company to make use of Vietnam’s skilled labor, stable investment environment and competitive costs, he said.

It also strengthens Marmon Holdings’ global manufacturing capacity and diversifies its supply chain outside of North America, he added.

Phan Cuu Chi, manager of industrial services at Savills HCMC, said the move signals growing confidence among American investors in Vietnam as a manufacturing center in Asia’s supply chain.

The country continues to have advantages in terms of costs, human resources and location, she said, adding that Marmon Holdings has become a prime example of global corporations expanding operations to Southeast Asia and particularly Vietnam.

Marmon Holdings is a diversified industrial conglomerate with over 100 member companies in sectors including industrial equipment manufacturing, components, transportation, food, and infrastructure.

It employs more than 30,000 people and earns annual revenues of around US$12 billion.

Its supply chain expansion comes as companies worldwide increasingly opt to lease high-quality factories to rapidly establish production lines for electronics, automotive and industrial components.

Cushman & Wakefield said the supply of ready-built factories in Vietnam has surged since 2017 to reach 11 million square meters with an occupancy rate exceeding 85% as of the second quarter of this year.

HCMC leads with three million square meters and is followed by Dong Nai and Hai Phong City with 2.2 million square meters each.

The global shift in supply chains is driving a strong demand for premium factory space, making it a strategic segment of Vietnam’s industrial real estate market.