We started sourcing from Vietnam mainly to reduce costs. But what surprised me wasn’t just the savings—it was the quality, flexibility, and how smooth the export process became.
Vietnam’s key advantages in custom metal fabrication include low production costs, a skilled and growing workforce, strong government support, and a strategic location that speeds up global shipping.
Here’s how these advantages translate into real value for importers like us.
How does Vietnam’s workforce benefit metal fabrication quality?
One of the reasons we stick with Vietnamese suppliers is the craftsmanship. Whether it’s CNC parts or welded assemblies, the quality speaks for itself.
Vietnam’s workforce combines low labor costs with a rising pool of engineers and skilled technicians experienced in CNC machining, metal stamping, laser cutting, and high-precision assembly. 1
Capabilities of Vietnam’s Metal Fabrication Workforce
| Skill Area | Common Techniques | Available Talent |
|---|---|---|
| CNC Machining | Milling, turning, grinding | ✔ Widespread |
| Sheet Metal Work | Bending, cutting, stamping | ✔ Skilled labor |
| Welding & Assembly | MIG/TIG welding, jig fixtures | ✔ Certified welders |
| Finishing | Powder coating, polishing, anodizing | ✔ Local & export standard |
Vietnam’s vocational training centers and technical universities are producing a steady flow of machinists and manufacturing engineers. Many have experience working in joint ventures with Japanese, Korean, and European firms—bringing global standards into local workshops. 2
We’ve also noticed a cultural pride in precision and deadlines. Parts we order typically arrive clean, within tolerance, and properly documented—saving us time on inspections.
Are Vietnam’s machining costs lower than China’s?
We recently compared quotes for a stainless steel bracket: Vietnam was 25% cheaper than China—without cutting corners on quality.
Yes—Vietnam’s machining costs are significantly lower than China’s, often 20% to 40% less for the same part, depending on material, complexity, and volume. 3
Vietnam vs China: Cost Breakdown for a Machined Steel Part
| Cost Component | China (USD) | Vietnam (USD) | Notes |
|---|---|---|---|
| Raw Material (304 SS) | 6.80/kg | 6.90/kg | Slightly higher in Vietnam |
| Machining Labor | 15.00/hour | 8.50/hour | Vietnam is 40–50% lower |
| Overhead & Admin | 12% | 8% | Leaner factory operations |
| Export Duty/Compliance | Included | Included | Similar across both |
| Final Cost per Unit | \$5.80 | \$4.20 | \~28% savings |
Material costs may be slightly higher in Vietnam due to reliance on imports, but overall savings from labor and overhead often outweigh this. Many suppliers optimize with automation, running small batch jobs with CNCs overnight to reduce lead times.
What government incentives support metal manufacturers?
One of our Vietnamese suppliers received a tax exemption for investing in a new CNC line. That lowered their costs—and ours.
Vietnam’s government supports metal manufacturers through tax breaks, duty exemptions on equipment, and favorable land use policies. It also promotes exports through FTAs and manufacturing grants. 4
Key Government Support Programs
| Incentive | Benefit | Who Qualifies |
|---|---|---|
| Corporate Income Tax Holiday | 0% for 4 years, then 50% for 9 years | High-tech or export-driven factories |
| Import Duty Exemption | No tax on imported machinery/raw materials | Manufacturers in economic zones |
| Land Lease Discounts | Up to 70% off | In government-supported parks |
| Export Support | Marketing, trade shows, customs facilitation | Exporters with valid licenses |
In addition, Vietnam’s participation in FTAs like CPTPP, EVFTA, and RCEP means that goods produced locally can qualify for reduced tariffs or even duty-free treatment when shipped to markets like the U.S., EU, and Japan. 5
How does Vietnam’s location reduce shipping time?
One of the things we underestimated early on was just how smooth logistics from Vietnam can be. Shorter transit and faster port clearance saved us weeks on critical projects.
Vietnam’s central location in Southeast Asia and proximity to China, ASEAN, and Pacific markets make it a strategic manufacturing hub with efficient access to global shipping lanes. 6
Average Sea Freight Transit Times
| Route | From Vietnam | From China |
|---|---|---|
| Vietnam to U.S. West Coast | 16–18 days | 18–21 days |
| Vietnam to Japan | 5–7 days | 5–6 days |
| Vietnam to Singapore | 2–3 days | 3–4 days |
| Vietnam to Europe | 27–30 days | 29–32 days |
Vietnam’s major ports—Hai Phong, Da Nang, and Ho Chi Minh (Cat Lai)—are integrated with inland logistics and customs zones, helping reduce delays at both origin and destination.
With improved infrastructure and free trade zone processes, many shipments clear export customs in less than 48 hours. 7
Conclusion
Vietnam offers a rare combination of low cost, high quality, skilled labor, and strategic access to global markets. For custom metal parts, it’s more than a “China alternative”—it’s a long-term sourcing advantage.
Footnotes
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Overview of Vietnam’s industrial labor strengths and global manufacturing appeal – Vietnam Briefing. ↩
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Analysis of skilled labor capacity in Vietnam’s precision machining sector – ASEAN Briefing. ↩
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Cost comparison in Asian manufacturing and labor analysis – Metalworking World Magazine. ↩
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Summary of Vietnam’s investment incentives for manufacturers – Trade.gov. ↩
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Government policy on FTAs and export benefits for Vietnamese factories – Vietnam Briefing. ↩
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Supply chain efficiency and port advantages in Vietnam – ASEAN Briefing. ↩
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Port clearance improvements and logistics timeframes – Trade.gov. ↩
