Expanding on our previous post, ‘Trends and Opportunities in Vietnam’s Manufacturing Industry,’ which highlighted the ongoing shift towards advanced manufacturing, our latest article focuses specifically on Vietnam’s precision manufacturing sector and the related opportunities that exist for your business within this exciting and fast-growing industry.
Overview
Vietnam is ripe with opportunities for any business in search of manufacturing solutions that come with cost advantages, without the sacrifice of quality. Additionally, if your businesses provides solutions that can enhance capabilities, ranging from skills training to technology and equipment, Vietnam could be your next big market.
Key sub-sectors of Vietnam’s precision manufacturing sector, such as mechanical engineering, precision parts production and advanced electronics development, have increasingly become key pillars of the industry, which has grown on average of 10% annually from 2018 to 2023.
Quality and Technology in Production
Product Quality: Manufacturers in Vietnam are increasingly focused on improving product quality to meet international standards. Many local and foreign-invested manufacturers have achieved quality certifications such as ISO 9001, ISO 14001, and other industry-specific international certifications. This ensures that products manufactured in Vietnam are not only competitive in terms of cost, but also in terms of quality.
Advanced Technology: Modern technologies such as CNC machining, robotic solutions, and 3D printing technologies are increasingly utilized in factories in Vietnam, providing manufacturers with capabilities to produce products with high precision to meet the stringent requirements of international customers. For example, international giants like Foxconn and Samsung have invested billions of dollars in manufacturing plants in Vietnam, utilizing the most advanced technologies in their operations, driving advancement in the industry as a whole.
Competitive Labor and Production Costs: While availability of the skilled workforce continues to develop, Vietnam continues to remain competitive on cost. According to the Ministry of Labor, Invalids, and Social Affairs, the average salary of production workers in Vietnam in 2023 was approximately $300-400 USD per month, lower than in China and other countries in the region. Overall, Vietnam offers advantages for businesses seeking low-cost manufacturing sources, including for operations that require technical and skilled employees.
Capabilities
Some examples of capabilities in Vietnam’s precision manufacturing sector include:
- CNC Machining and Computer Aided Manufacturing: Computerized manufacturing is a fast-growing practice in Vietnam. Combining low-cost inputs with advanced processes allows for an end result of high quality products at competitive costs, for whatever your product may be.
- Die Casting and Injection Molding: Whether your product is big or small, made of metal or plastic, or anything in between, it can likely be made in Vietnam. Advanced processes are increasingly utilized to minimize errors and ensure quality outcomes.
- Automated Assembly: Increasingly, robotics systems are used to automate assembly line processes, providing consistency and reducing input costs.
- CAD Design and Engineering: Vietnam’s specialized industry for computerized design and engineering continues to grow, providing opportunities for international companies looking for lower-cost solutions for quality engineering and design services to contract Vietnamese solutions.
The Bottom Line
If you are in need of manufacturing solutions, Vietnam is ready for your business. From product engineering and design, through to computer-aided production, take advantage of Vietnam’s numerous free trade agreements, skilled workforce and low-cost inputs to create or source your high-quality products in Vietnam.
If your business provides technology, training, equipment or machinery solutions, Vietnam could be a promising new market where you can play a role in driving growth and capacity in Vietnam’s precision manufacturing sector.
From finding the right partners for OEM/ODM manufacturing, to establishing a factory, to developing sales and distribution channels, The Herbers Agency is ready to help you navigate and seize opportunities in Vietnam’s precision manufacturing sector.
Contact us today to begin your Vietnam journey.
