When we first started sourcing from Vietnam, I assumed the U.S. was their biggest and most prioritized customer. Turns out—we’re important, but we’re far from alone.
The main buyers of Vietnamese custom metal parts are the U.S., European Union, Japan, South Korea, and ASEAN countries. This global demand means U.S. buyers compete with multiple regions for factory capacity and pricing.
If you're importing from Vietnam, it's important to understand who else is buying—because it affects your lead time, cost, and negotiating power.
Why do U.S. companies import metal parts from Vietnam?
After the U.S.–China trade war began, we shifted more projects to Vietnam to reduce tariff exposure. But we stayed because of the quality, not just the cost.
U.S. buyers import custom metal parts from Vietnam to avoid Section 301 tariffs on Chinese goods 1, reduce sourcing risk, and leverage Vietnam’s skilled labor and lower costs.
What Makes Vietnam Attractive for U.S. Importers?
| Factor | Benefit |
|---|---|
| Lower Labor Cost | Typically 30–50% less than China |
| Skilled Workforce | CNC, welding, laser cutting, surface finishing |
| Tariff Avoidance | No Section 301 tariff if origin rules are met |
| Political Risk Diversification | More stable U.S.–Vietnam trade relations |
| Regional Supply Chains | Access to ASEAN and Pacific inputs |
| Export-Ready Factories | Experience with U.S. quality and compliance |
Even with rising tariffs on steel, Vietnam remains a reliable option due to its responsiveness, transparent pricing, and improving documentation systems.
How does EU demand affect U.S. supply?
We had a customer order delayed because our Vietnamese supplier was fulfilling a large shipment to Germany. That was when I realized—Europe is just as active a buyer.
The EU is one of Vietnam’s biggest buyers of metal products, and strong European demand can reduce production availability and extend lead times for U.S. buyers.
Key EU-Vietnam Trade Dynamics
| Factor | Impact on U.S. Buyers |
|---|---|
| EVFTA (EU–Vietnam FTA) 2 | Lower tariffs for EU buyers, competitive edge |
| EU Quality Standards | Shared factory capacity for high-compliance parts |
| Strong Demand for Machinery | Competes for steel frames, CNC components |
| Shared Production Quotas | Suppliers may reserve capacity for EU clients |
The EVFTA agreement gives European buyers tariff advantages that U.S. buyers don't currently enjoy, which makes EU orders more attractive to Vietnamese exporters—especially for high-margin parts.
This doesn’t mean U.S. buyers get ignored—but we have to negotiate for priority during peak production months.
What markets compete for Vietnam’s production capacity?
One of our suppliers told us they’re now getting steady orders from Australia, Malaysia, and even Mexico. Vietnam isn’t just for China+1 anymore—it’s a global player.
Vietnam’s metal part production is in demand from Japan, South Korea, Taiwan, and ASEAN neighbors 3, and this global spread increases competition for limited factory capacity.
Major Importers of Vietnamese Metal Parts
| Country/Region | Market Share | Demand Type |
|---|---|---|
| United States | \~13% | Machined & fabricated parts |
| European Union | \~23% | Industrial & construction components |
| ASEAN (e.g., Malaysia, Thailand) | \~26% | Automotive, construction |
| Japan & Korea | \~20% | Electronics, automotive parts |
| Mexico | Rising | OEM and Tier-2 metal supply |
These countries often enjoy preferential trade terms through FTAs 4, or long-standing industrial relationships, which means Vietnamese suppliers must allocate capacity strategically across clients.
For U.S. buyers, this underscores the need to plan orders earlier, lock in production slots, and maintain strong relationships with reliable vendors.
Does high demand raise prices for U.S. buyers?
Yes, and we’ve felt it. Every year since 2022, our average per-unit cost has increased—even when global steel prices stayed stable. High global demand is one of the key reasons.
As more regions buy from Vietnam, production costs and factory rates 5 have gradually risen—leading to higher prices and longer lead times for U.S. buyers.
Factors Driving Price Increases
| Factor | Effect on U.S. Buyers |
|---|---|
| Labor Wage Growth | +10–15% annual labor increase since 2021 |
| Factory Utilization >90% | Priority given to large-volume clients |
| Currency Fluctuation | Dollar strength may help or hurt, depending on timing |
| Material Sourcing Delays 6 | Steel imports from China/Korea affect pricing |
| Freight Congestion | Spikes in container rates reduce price advantage |
To stay competitive, we now:
- Negotiate annual blanket PO rates with volume tiers
- Ask for production slot reservations months in advance
- Use dual-sourcing where feasible (e.g., Vietnam + Taiwan)
Price pressure is real—but smart planning and close coordination with suppliers can still make Vietnam a cost-effective option.
Conclusion
Vietnam exports custom metal parts to buyers around the world—not just the U.S. As demand from the EU, Japan, and ASEAN rises, U.S. buyers must act earlier, negotiate smarter, and build stronger supplier relationships to stay ahead.
