Are Raw Materials for Factories That Produce and Export Custom Metal Parts from Vietnam Sourced Locally or Imported?

I used to think our Vietnamese supplier sourced everything locally. Then I asked for 316L stainless steel with traceable mill certs—and the price and lead time jumped. Why? It was imported.

Factories in Vietnam source custom metal part materials from both local and imported sources ¹. While basic steel and aluminum are available domestically, most high‑specification metals like alloy steels and aircraft‑grade aluminum are imported.

This mix directly affects cost, lead time, and project feasibility. Here's what you need to know before placing an order.

What metals are available in Vietnam for manufacturing?

One of our suppliers in Binh Duong can get construction‑grade steel fast—but for heat‑treated tool steel or copper alloys, they rely on imports.

Vietnam locally produces long steel, basic hot-rolled coil (HRC), coated sheet steel, and standard aluminum profiles—but depends on imports for precision‑grade materials used in CNC, stamping, and welding. Major domestic producers like Hoa Phat Group and Formosa Ha Tinh Steel Corporation focus on construction output, while high-spec alloys are imported. ²

Locally Available vs Imported Metals

Large domestic producers like Hoa Phat and Formosa Ha Tinh focus on bulk and construction markets; export‑grade custom parts still rely heavily on imports from China, Japan, Korea, or Taiwan. ³

How dependent is Vietnam on imported raw steel?

I was shocked to learn that Vietnam imported more than 14 million tons of steel last year—even with all the local mills running.

Vietnam imported nearly \$12 billion worth of steel and iron products from China in 2024, with galvanised steel imports from China and South Korea comprising 64–67% of total imports between 2022 and 2023. ⁴

Vietnam is heavily dependent on imported steel—especially high‑spec mechanical steel—for its metalworking sector. Most custom-part factories import alloy steel, stainless steel, and special plate materials. ⁵

Vietnam Steel Import Facts

Reasons for Import Dependency

• Local mills focus on rebar and base materials, not precision grades.
• High‑alloy or certified steels are not produced domestically at export‑quality scale.
• Surface treatment, flatness, and traceability standards for U.S./EU markets often require imported input.

The result For many projects, your supplier has to order the raw material first—and that extends the lead time.

Vietnam has taken trade actions: it recently imposed temporary anti‑dumping tariffs of up to 27.83% on Chinese hot‑rolled coil, effective March 7, 2025, as part of efforts to protect local production. ⁶

Do imported materials affect production lead times?

I once requested brass connectors for a U.S. customer. The machining only took four days—but we waited three weeks for the imported bar stock to arrive.

Yes—imported raw materials often extend lead times by 2–4 weeks, due to overseas shipping, MOQs, customs clearance delays, and inspection requirements like mill test certs.

Factors That Influence Lead Time

How do material sources impact final product costs?

We once quoted the same CNC part in mild steel and 17‑4 stainless. The price more than doubled—not due to machining, but raw material cost and import complexity.

Imported materials significantly raise product cost due to international base prices, shipping fees, duties/tariffs, exchange rate fluctuations, and supplier inventory risk.

Cost Impact Breakdown

We now ask suppliers to quote material and machining separately, so we can evaluate options. For standard parts, we sometimes accept locally available materials to save cost and reduce lead time.

But for high‑precision or critical components, imported certified steel is non‑negotiable—even if it costs more.

Conclusion

Vietnam’s metal factories rely on both local and imported raw materials. For export‑quality or complex custom parts, imported inputs dominate—and directly affect price, lead time, and feasibility. Plan early and ask detailed material questions to avoid surprises.

Footnotes