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Hestrahandsken

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Hestrahandsken / Martin Magnusson & Co, better known as Hestra Gloves, is an international family business headquartered in Hestra, Sweden. Having a history of 82 years in producing and selling gloves to over 30 countries worldwide, the company has recently established a subsidiary and factory in Hai Phong, Vietnam to cater to increased global demand and to benefit from Vietnam’s extensive competence and competitive labour costs.

Hestra is producing and selling several types of gloves. Gloves for skiing and outdoor gloves are by turnover the major part, followed by dress gloves and work gloves (Hestra Job). Hestra’s newest factory is located in a well-established industrial zone outside Hai Phong, the Northern portal city of Vietnam. The factory’s production aims to support an increasing number of orders for Hestra Gloves worldwide and complements existing factories in Hungary and China.

Hestra followed a structured approach while establishing the factory. The first step was to evaluate the investment plan in Vietnam by conducting an establishment pre-study to outline different establishment options and implications. The next step was to look for available plots in Industrial Parks and the parks' incentives for Hestra to establish the new factory. In parallel, the company registration was conducted, involving applications for investment certificate, enterprise certificate and trading license. In the last stage of the process, the company successfully recruited a local finance manager who will be a key person to navigate  complex local regulations.

Hestra Vietnam completed the establishment process in the end of 2017, with production expected to start in spring 2018. Anton Magnusson, chairman cum general director of Hestra Vietnam explains:

“The pre-establishment study was important for us to gain a better understanding about the establishment options and business environment. We also learned that the registration process in Vietnam involves heavy paperwork and requires constant interactions with the authorities. Without local knowledge, the registration process might be delayed for several months or rejected, and extensive additional paperwork may be requested. We used Business Sweden as advisors throughout the process, from the establishment pre-study to location screening, company registration, and recruitment of finance manager. We appreciate their in-depth knowledge of the market & regulations. It also feels comfortable to have a trusted advisor overseas that we can rely on for various questions, and we were surprised how smooth the establishment process was.”

Having supported Hestra throughout the establishment process, Diem Anh Tran, consultant at Business Sweden in Vietnam says that it has been very exciting to work with the project: “We are happy to see an increased interest from Swedish companies to invest in manufacturing and sourcing operations in Vietnam. Hestra is still among few Swedish companies having production facility in Vietnam and we look forward to supporting more companies in their establishment process.”