
Thoughts on Vietnamese Manufacturing
We have been making trips to Vietnam to explore the manufacturing environment south of the border. We have had the pleasure to make connections in Hanoi and Saigon and expand our team in-country. Below are thoughts on starting to do business in Vietnam.
Vietnamese Die Casting of Korean Aluminum, Heading to Japan
Prices
Let’s start here. I had heard that prices in Vietnam were low, even lower than those in China. But never had any real info to back that up. Now with our first projects in Vietnam, we’re starting to get that data. Here are per piece quotes on the same die cast aluminum part, quantity 100,000 pieces:
USA $0.68China $0.27Vietnam $0.13
With USA tooling costs at $40,000 and Vietnam tooling costs at $4000.
The prices really are that good. A rule of thumb I heard was 40% savings over China - at least here, that more than holds.
Old machines line Route 1A in Saigon. $2000 gets you whatever you want, if you can bargain.
So....