I often get asked if most Vietnamese factories that make custom metal parts can ship directly to the U.S. The truth may surprise you.
Most Vietnamese factories do not export directly to the U.S. Only a small share of factories—mainly large, foreign-invested, or certified plants—handle shipments themselves. The majority of small and medium-sized enterprises (SMEs), which make up over 98% of all businesses in Vietnam, rely on trading companies and logistics brokers 1 to reach overseas buyers. Studies show only about 11.5% of SMEs and around 25% of MSMEs export directly, which means most custom part producers depend on middlemen instead of handling U.S. trade on their own.
This creates an important distinction between large, export-ready operations and small local factories that may still be locked out of direct global trade.
What Defines a Factory’s Export Readiness in Vietnam?
I wanted to understand what separates an export-ready factory from one that isn’t. The answer lies in a mix of paperwork, systems, and experience.
A Vietnamese factory is considered export-ready if it has the right licenses, certifications, production systems, and experienced staff to handle overseas trade. Key requirements include a valid business license 2, customs registration 3, ISO 9001 or IATF 16949 certifications 4, and a dedicated export sales team. Factories in major hubs like Ho Chi Minh City and Hai Phong 5 tend to be more experienced in direct shipping because they are closer to ports and logistics services.
Key Factors of Export Readiness
| Factor | Why It Matters |
|---|---|
| Business license | Confirms legal right to engage in export activities |
| Customs registration | Needed for clearance and documentation |
| Certifications (ISO) | Proves quality systems that overseas buyers expect |
| Export sales staff | Ensures communication and compliance with buyers |
Factories without these basics often rely on intermediaries to fill the gap.
How Can You Identify a Factory with Export Documentation?
When I source factories, I always ask for proof of export. Without it, you’re taking a big risk.
You can identify export-capable factories by checking their certifications, audit reports, and sample shipping documents. Real exporters can show past bills of lading 6, invoices, and certificates of origin 7. They also hold valid ISO certifications or results from third-party factory audits 8. These documents confirm both legality and capability to manage overseas shipments.
Export Documentation Checklist
| Document Type | What It Proves |
|---|---|
| Bill of Lading (B/L) | Actual history of international shipments |
| Certificate of Origin (C/O) | Legal compliance with trade agreements |
| Commercial Invoice & Packing List | Experience with customs declarations |
| ISO 9001 / IATF 16949 | Standardized quality and compliance systems |
If a supplier avoids providing these, it’s a red flag—they may not have direct export experience.
Do Most Suppliers in Vietnam Handle U.S. Compliance Standards?
I’ve seen many buyers assume Vietnamese suppliers know U.S. standards—but that’s not always the case.
Only larger, export-focused factories in Vietnam typically handle U.S. compliance requirements. These include ASTM standards 9, RoHS regulations 10, or automotive-specific certifications. Smaller domestic suppliers often lack the testing equipment and trained staff to meet such standards, relying instead on trading companies or foreign partners to ensure compliance.
U.S. Compliance Capability by Supplier Type
| Supplier Type | Compliance Ability |
|---|---|
| Large foreign-invested | High—equipped with labs, certifications, QC staff |
| Certified domestic (ISO) | Moderate—can handle basic compliance |
| Small domestic SME | Low—often rely on traders or third-party labs |
So if your project requires strict standards, you need to work with certified suppliers, not small unverified shops.
What Challenges Do New Exporters in Vietnam Typically Face?
From what I’ve learned, new exporters often stumble not because of production, but because of the export system itself.
Vietnamese SMEs face challenges like high entry costs, limited export knowledge, lack of certifications, and difficulty accessing finance. Many new exporters also struggle with customs paperwork, delayed shipments, and not having English-speaking sales staff. These barriers slow down their ability to engage directly with U.S. buyers.
Common Challenges for New Exporters
| Challenge | Impact on Exporting |
|---|---|
| Lack of certifications | Buyers reject orders due to missing compliance |
| Weak English/communication | Misunderstandings with foreign customers |
| Customs paperwork | Errors cause shipment delays |
| Financing issues | Can’t afford large export orders upfront |
This is why many small factories choose to work with intermediaries or brokers instead of going direct.
Conclusion
Most Vietnamese custom metal part factories do not export directly. Large and certified ones do, but small SMEs usually depend on trading intermediaries.
Footnotes
1. Overview of Vietnam’s distribution channels and trading companies. ↩︎
2. Guide on obtaining a business license in Vietnam. ↩︎
3. Official Vietnam Customs registration portal. ↩︎
4. Explanation of ISO 9001 certification for exporters. ↩︎
5. Trade information on Vietnam’s main industrial hubs. ↩︎
6. Definition and importance of a bill of lading. ↩︎
7. WTO guide to certificates of origin. ↩︎
8. Role of third-party factory audits in compliance. ↩︎
9. ASTM standards reference for product compliance. ↩︎
10. European Commission overview of RoHS directive. ↩︎
