In the context of production disruptions caused by the COVID-19 pandemic and the US-China trade war, Vietnam has emerged as a promising destination for numerous multinational corporations. With strategic geographical location, pro-trade policies, and a young and abundant workforce with significantly lower average wages compared to other countries worldwide, Vietnam’s manufacturing sector, particularly the supporting industries, possesses a high level of competitiveness.
Alongside the shifting supply chains of multinational corporations to Vietnam, many industry giants in manufacturing and services such as Samsung, Panasonic, LG, Bosch, Maersk, among others, are continuing to seek suppliers of supporting equipment in Vietnam. According to the Foreign Investment Agency under the Ministry of Planning and Investment, it is projected that in 2023, foreign direct investment (FDI) inflows into Vietnam could reach an impressive $38 billion.
Are you looking to expand your supply chain in Vietnam? Are you facing difficulties in finding reputable leading manufacturers in this country? Let us assist you.
Inside a manufacturing plant in Vietnam
WHERE TO FIND REPUTABLE INDUSTRIAL SUPPORTING MANUFACTURERS IN VIETNAM
1. Data analysis sources and website addresses of leading manufacturers:
- Information sources from global companies are widely used by foreign businesses to search for reputable suppliers and manufacturers in Vietnam. Some reliable data channels include Vietnam Manufacturers, How to Source Industrial Suppliers in Vietnam – Vietnam Briefing News (vietnam-briefing.com), and more.;…
- Many industrial supporting manufacturers have their own websites to showcase their products and services. Therefore, you can use search tools like Google to find the website addresses of these manufacturers, allowing you to access and contact them directly. Some key search keywords could be “Vietnam machining manufacturer,” “Sourcing & Manufacturing in Vietnam,” “Vietnam manufacturing company,” “Top manufacturing company in Vietnam,” “Vietnam precision engineering company,” and so on;…
2. Reputable Organizations and Associations:
- Vietnam Association for Supporting Indsutries – VASI
VASI has nearly 300 members in various fields including tooling, molds, automation, metal components, electrical-electronics, plastics-rubber, materials, software solutions, etc. These are leading companies in Vietnam that provide services to FDI companies and export to Japan, South Korea, North America, Europe, and more. VASI is also a trusted partner of government agencies in Vietnam’s industry, such as MOIT, MPI, MOST…
- Vietnamese Chamber of Commerce and Industry VCCI
The Vietnam Chamber of Commerce and Industry (VCCI) is a non-profit organization representing the business community in Vietnam. Established in 1950, VCCI plays a vital role in Vietnam’s economic development through supporting business activities, especially small and medium-sized enterprises, while building business relationships between Vietnam and other countries.
- Japan External Trade Organization (JETRO)
Established by the Government of Japan in 1958, JETRO is a government-related organization for trade promotion. Each year, this organization conducts various studies and evaluates the market potential of Vietnam as well as top service providers in the supporting industries of this country with a population of 100 million.
- And many other organizations…
Images depicting the activities of VCCI (illustration)
3. Trade Shows and Exhibitions
These are also useful information channels and places to seek ideal cooperation opportunities for foreign businesses. Participating in trade shows and exhibitions is an effective way to find reputable manufacturers and suppliers in Vietnam. Similar to other countries, Vietnam hosts numerous trade fairs and exhibitions specific to particular industries, including some related to the supporting industries:
- Vietnam International Supporting Industries and Processing – Manufacturing Exhibition (VIMEXPO) (held annually in November)
VIMEXPO is considered a favorable environment for businesses in the supporting industries and processing-manufacturing sectors to directly connect, seek new cooperation opportunities, access partners, and expand markets. VIMEXPO 2022 had over 200 participating companies with nearly 300 booths displayed in an area of nearly 5,000 square meters, making it the leading event for supporting industries and processing-manufacturing in Vietnam. The showcased products included competitive advantages of the supporting industries such as automobile assembly, mechanical engineering, high-tech industries, electronics, and other related sectors.
- METALEX Vietnam 2023 – International Exhibition on Machine Tools & Metalworking Solutions for Production Upgrade (held annually in October)
METALEX Vietnam 2023 brings together manufacturing and supporting industries annually to explore efficient metalworking solutions, introduce products, core business intelligence, and foster cooperation to develop business in Vietnam’s emerging market. With over 10,000 diverse buyers and more than 500 brands from 25 countries, it is a platform encompassing all aspects of the metalworking industry, generating an industrial manufacturing storm.
- Vietnam International Trade Fair (Vietnam Expo) (usually held in April)
With 31 years of accompanying businesses, Vietnam Expo has become one of the most important trade promotion activities and the largest-scale event of the Vietnam Chamber of Commerce and Industry. Vietnam Expo 2023 attracted more than 500 Vietnamese and international businesses from 16 countries and territories worldwide, showcasing products in 600 booths. The main target audience of the fair is manufacturers and suppliers, along with individuals and organizations seeking sources of goods, materials, machinery, and equipment for production inputs.
- Vietnam Manufacturing Expo (VME 2022) – International Industrial Exhibition (held annually in August)
Taking place in August each year, VME serves the manufacturing community in the machinery and component, and supporting industries. The exhibition showcases the latest and most advanced machinery and technology from nearly 200 renowned brands from around 20 countries, attracting over 10,000 manufacturers in the manufacturing and supporting industries.
- Vietnam Industrial & Manufacturing Fair (VIMF) 2023 in conjunction with Vietnam Industrial Automation Fiesta (VIAF) 2023 (held annually in November)
VIMF is an international specialized exhibition with the participation of companies from Vietnam, Singapore, South Korea, Japan, Thailand, Malaysia, Germany, the United States, India, Italy, etc. It attracts quality visitors mainly from industrial zones, factories, manufacturing and engineering companies, contractors, projects, integrated systems, solution groups, etc.
- AeroExpo Hanoi & Vietnam Aviation Forum 2023 – International Premium Manufacturing, Supply, and Sustainable Consumption Exhibition in the Aerospace Industry (usually held in March)
This exhibition typically features over 100 booths from 10 countries, including approximately 70% domestic booths showcasing products, technologies, production capacities, technical infrastructure, and logistics of businesses in the aviation industry. With the participation of major airlines worldwide such as Airbus, Boeing, China Southern, China Eastern, and foreign companies from around the world, the exhibition serves as an opportunity to promote and introduce the Hanoi industrial sector in general and the aviation industry in particular to over 160 partners in the global aerospace product service supply chain.
Images at the Metalex Trade Show
EVALUATING THE RELIABILITY OF SUPPLIER IN EMERGING COUNTRIES
Finding suppliers in emerging countries can bring numerous benefits to businesses, such as cost savings, market expansion, and enhanced supply chain diversity. However, to successfully find reliable suppliers and ensure product quality, foreign businesses need to pay attention to the following:
- Understanding the advantages, typical characteristics, and working culture of the target country, especially in the supporting industries sector
Since the beginning of 2022, Vietnam has reopened its entire economy and society after the Covid-19 pandemic with the motto of “adaptation and flexibility.” As a result, production and trade activities have resumed normally. Positive disease control, along with resolute and flexible government management, has improved the business environment and made Vietnam an attractive destination for many foreign investors, particularly in the supporting industries sector. The supporting industries in Vietnam encompass various fields such as electronic component manufacturing, automotive component manufacturing, machinery production, measurement equipment manufacturing, refrigerator film production, mechanical and electronic processing services, metal surface processing, etc. According to Resolution 115/NQ-CP by the Government, the target by 2025 is for Vietnamese enterprises to have the capability to produce competitive supporting industrial products, meeting 45% of the domestic production and consumption needs and accounting for 11% of the industrial production value. Additionally, around 1,000 domestic enterprises have the potential to directly supply assembly businesses and multinational corporations operating in Vietnam. By 2030, supporting industrial products are expected to meet 70% of the domestic production and consumption needs, accounting for approximately 14% of the industrial production value. Alongside the advantages of investment openness policies and abundant high-quality human resources, the Vietnamese supporting industries also face challenges such as the majority of industrial enterprises being small or medium-sized, limited capital and access to financing, dependence on single-source imports for raw materials.
- Evaluating the competitiveness of potential suppliers in the region; seeking information about industry organizations and alliances in the target country to connect with leading suppliers
To assess the professionalism of supporting industrial manufacturers in Vietnam, you need to research and evaluate a company’s experience and capabilities by examining its operating history, scale, infrastructure, workforce, and previous customer collaborations. Evaluate the quality of products and services provided by the company by studying its production processes, quality certifications, and customer feedback. Additionally, consider the aspect of competitive pricing as a top priority. You can search for information about the company on reliable forums and websites to assess its reputation.
- Engage in direct communication with suppliers through email, phone, or trade fairs, and ideally visit their manufacturing facilities in person
For any order, regardless of its value, collaborating with a supplier that has sufficient capacity is what all foreign businesses seek. Arranging visits to manufacturing facilities in Vietnam is the best way to assess the suitability, production capacity, and ability to fulfill orders of potential suppliers. If conditions are not suitable, a virtual factory tour is an ideal option. Alternatively, you can hire an intermediary company that can assist in the initial evaluation to ensure that potential Vietnamese manufacturers align with your requirements.
- Request necessary certifications in production, such as IATF, ISO; inspect production processes, quality control, assembly, and packaging
To ensure product quality and market viability, international certifications such as IATF (International Automotive Task Force) and ISO (International Organization for Standardization) are crucial in production. Inspecting production processes is vital, as these processes need to be designed to ensure the stability and reliability of the final products. This includes aspects such as raw materials, machinery, production methods, and quality checks before and after production. Stringent quality control processes at every step are indispensable to ensure that the produced items meet the strictest standards set by customers.
- Verify documentation and customs procedures to ensure legal trade transactions and identify potential risks while planning for prevention and resolution when necessary.
CNCTECH IS READY TO BECOME YOUR SOLID PARTNER
CNCTech was established in 2008 as a CAM programming office for CNC machining companies in the western United States. We opened our first factory in Binh Duong province in 2010. To date, we have five factories in Vietnam, serving customers from around the world. CNCTech takes great pride in having customers who have been with us since the early days.
We currently provide three main product groups:
- CNC Machining: As you can tell by the name, we are at heart a CNC machining company. Every single month, our factories in Vietnam process more than a thousand drawings of parts to build custom machineries, automation equipment, motorcycles, electronic devices, and more.
CNCTech Factory.
- Tooling (Mold Fabrication): CNCTech now fabricates plastic mold and die casting tools for Motorcycles, Network Equipment, Electronic Appliances, IoT Devices of our Japanese, Italian, Israeli and domestic customers. We also welcome repairs, engineering changes, and maintenance on your existing tools.
CNCTech tooling factory.
- Molding to Assembly: CNCTech offers injection molding service and specializes in various plastic molds for Motorcycles, Telecom Equipment, Home Appliances, IoT Devices, and other OEM Applications. We run nearly 150 presses with capacities from 75 to 450 tons in northern and southern facilities.
Our goal is to provide customers with comprehensive integrated manufacturing solutions, streamlined lead times, top-quality products, and competitive prices. We continuously enhance our capabilities, improve products and services, and actively implement modern management standards and tools in manufacturing and fabrication.
We have the capacity and professionalism to accompany you in expanding your production in Vietnam.
