Vietnam low cost manufacturing. If you have your overseas products manufacturing in China time to consider Vietnam with a proven track record in low cost manufacturing.

Vietnam low cost manufacturing

Thailand and Malaysia are cheaper but involve higher risks than Vietnam

Vietnam competes directly with Thailand and Malaysia in providing a low cost product manufacturing solution in Asia. Overall, in Thailand and Malaysia you can find cheaper monthly wages than Vietnam but the track record of these two countries is not as good as Vietnam. Too many lax regulations in the former countries have caused catastrophic destruction of assets and numerous workers lives lost.

Recent events in Thailand and Malaysia reveal an unstable and very dangerous economic environment for international apparel companies to operate. Hundreds of Thailand workers have died because of a lack of factory build standards brought on by corruption and abuse of power. Many unlawful sub-contracting of major brands is quietly arranged in these two countries which disregard safe working conditions and environment.

China is not a cheap source of manufacturing any more

Many international companies are seriously looking to Vietnam as an alternative location and source, for their low cost manufacturing, reconsidering China. The common indicators affecting all forms of manufacturing in China are:

  • Tariff
  • Higher labor costs
  • China’s policies of not encouraging foreign low cost manufacturers
  • Shortages of workers
  • Restrictive government policies
  • Inflation
  • The possibility of widespread civic disputes

Benefits of Low Cost Manufacturing products in Vietnam

Vietnam low cost manufacturing
  • Create good quality, inexpensive products for local and neighbouring ASEAN countries
  • Low cost labour (less than Thailand and China where other products manufacturers operate)
  • Usage of inexpensive local raw material (rubber, wood, plastic…)
  • Close proximity to East Asian (China, Japan, Korea and Taiwan) markets
  • Close proximity to South East Asian (Thailand, Singapore, Indonesia and Malaysia) markets

Low Cost Manufacturing is increasing in Vietnam getting the attention of the International Industry

This list of international companies include Apple, Microsoft, Nike… and Others are all considering or have implemented changes to operate more cheaper in countries like Vietnam.

Vietnam still presents good opportunities for long-term investment with 5 to 7 percent estimated overall growth in the years to come. (2012 to 2020).

Vietnam Sourcing can be your trusted partner in Vietnam

Choosing a Southeast Asian country like Vietnam for your low cost manufacturing entails extensive market research and due diligence.

It is imperative for a company to a find reliable local partner with a long history of operating in Vietnam that can help you directly in considering furniture manufacturing, in Vietnam.

You need to have a partner that understands the business climate and culture of Vietnam.

Vietnam Sourcing’s Management Group consists of well educated English-speaking Vietnamese Personnel in its Vietnam operations trained in western business practices.

And, it is important to be able to consult and communicate directly with your local expert in Vietnam that can provide insight on local markets and how these markets are likely to change in the short and the long term.

Vietnam Sourcing’s focus is on building trade agreements between worldwide companies and Vietnam businesses by providing full supply chain management services in sourcing, manufacturing, importing and exporting.

Contact Mr. Mike Johnson at to discuss your plans for a businesses in Vietnam.

Categories: Sourcing Blog