Vietnam Electronics Manufacturing And Sourcing Guide
In recent years, Vietnam has rapidly emerged as a significant hub in the global electronics manufacturing sector, offering a compelling alternative to the traditional powerhouses in this industry. For businesses looking to source electronics, Vietnam presents a landscape brimming with opportunities, characterized by its growing expertise, competitive costs, and strategic location in the heart of Southeast Asia. However, finding the proper electronic manufacturer in Vietnam is a journey that goes beyond mere geographical exploration; it involves navigating a complex ecosystem of suppliers, understanding local market dynamics, and aligning with manufacturers that can meet specific quality and production needs.
This blog post is designed to be your comprehensive guide to finding electronic manufacturers in Vietnam. Whether you’re a startup innovating in consumer electronics, an established company diversifying your supply chain, or a procurement manager seeking new sourcing destinations, understanding how to effectively connect with and evaluate potential manufacturing partners in Vietnam is crucial.
We will delve into the nuances of Vietnam’s electronics manufacturing landscape. We will highlight the key regions known for electronics production, the range of products and components typically manufactured, and the unique attributes that make Vietnamese manufacturers stand out in the global market. Additionally, this guide will provide practical insights into vetting manufacturers, from assessing capabilities and certifications to understanding the importance of intellectual property protection and ethical manufacturing practices.
Join us as we journey through the dynamic world of electronic manufacturing in Vietnam, offering strategic advice and practical tips to help you navigate this evolving sector. Your quest to find the right electronics manufacturing partner in Vietnam starts here, opening doors to new opportunities and partnerships in this rapidly growing industry.
What is the State of Vietnam’s Manufacturing Industry?
Vietnam is a top exporter of electronic goods. Its export value equals 1.8% of the total global electronics market. As a result, it has climbed from 47th in the global ranking in 2001 to 10th in 2020.
The company has attained a high position due to internal and external factors. Internally, it offers low labor costs, tax incentives, and free trade policies. Externally, it is a favorable option amid global tensions between the US, China, and Russia.
The company serves as a base for many significant remanufacturers, including Samsung, Intel, LG, Foxconn, and Canon. It is also home to numerous domestic suppliers, several of which have popped up over the last few years. These include BPhone, Viettel, and Vsmart.
While many domestic brands have been in the country for years, the fact that more are cropping up could mean a new era for electronic products in Vietnam.
Where are Most Vietnamese Electronics Manufacturers Located?
Most Vietnamese electronics manufacturers are located in the northern provinces of the country, such as Bac Giang, Hai Phong, and Bac Ninh. However, this area is preferred as neighboring cities provide much-needed supplies.
However, Intel, a large company with a stock of suppliers, is setting up a shop in South Vietnam.
What Types of Electronics Products are Manufactured in Vietnam?
Vietnam’s electronics manufacturing sector has witnessed significant growth and diversification in recent years. The country is increasingly becoming a major player in producing various electronic products and components. Some of the key electronics made in Vietnam include:
Smartphones and Tablets: Several major global brands have moved or are considering moving part of their smartphone and tablet production to Vietnam.
Computer Hardware: This includes laptops, desktops, and related components like hard drives, motherboards, and graphic cards.
Televisions and Monitors: Vietnam has become a notable production base for various televisions and display monitors.
Home Appliances: We manufacture small and large home appliances, such as refrigerators, washing machines, air conditioners, and microwaves.
Audio and Video Equipment includes speakers, headphones, and home audio systems.
Electronic Components: Production of integrated circuits, microchips, semiconductors, capacitors, and resistors.
Printed Circuit Boards (PCBs): Vietnam has facilities for fabricating various PCBs used in numerous electronic devices.
Camera Modules and Optical Products: This includes components for digital cameras and other imaging devices.
Wearable Technology: Such as smartwatches and fitness trackers.
Networking Equipment: Including routers, switches, and other networking infrastructure components.
Gaming Consoles and Accessories: Production of various gaming-related products, peripherals, and accessories.
Power Supplies and Chargers: Manufacturing of power adapters, battery chargers, and power supply units for various electronic devices.
Automotive Electronics: Including electronic components for vehicles, such as sensors, infotainment systems, and control units.
LED Lighting Products: Manufacturing various LED lighting solutions, including bulbs, strips, and industrial lighting products.
Electric and Electronic Tools: Power drills, saws, and other tools.
Medical Electronic Devices: Production of electronic medical equipment like digital thermometers, blood pressure monitors, and diagnostic devices.
Drone and Robotics Components: These include parts for consumer and industrial drones and various types of robotic equipment.
Security Electronics: Surveillance cameras, alarm systems, and access control devices.
Solar Panels and Renewable Energy Components: Reflecting the growing global focus on sustainable energy solutions.
Consumer Electronics Accessories: This includes phone cases, electronic chargers, earbuds, and other related accessories.
Telecommunication Equipment: Base stations, modems, and other infrastructure for telecommunications.
Battery Packs and Power Banks: Manufacturing of various types of batteries and portable power solutions.
Electronic Toys and Educational Devices: Including electronic learning tools, interactive toys, and gadgets for children.
Electronic Musical Instruments include keyboards, electronic drums, and music production equipment.
Vietnam’s growing role in electronics manufacturing is supported by its strategic location, competitive labor costs, and increasing investment in technology and skills development. The country is becoming an essential link in the global electronics supply chain, offering a viable alternative to traditional manufacturing hubs.
Why Vietnam Electronic Manufacturers?
There are many reasons why Vietnam is a preferred electronics manufacturer source. Here are a few to consider:
Low Labor Costs
Vietnam’s lower cost of living means its workers are paid less. With relatively expensive labor, companies can charge less for the products they sell. While these products may seem reasonably priced in Vietnam, they are extremely discounted for companies in first-world regions.
Electronics Manufacturing Capabilities
Although Vietnam’s pricing is affordable, this is not a case of ‘you get what you pay for.’ The workers are quite skilled in midstream production processes, focusing on assembly. With major first-generation manufacturers in the country, they have access to superior supply chains and training processes.
Free Trade Agreements
Free Trade Agreements are treaties between two or more countries designed to reduce or eliminate specific barriers to trade and investment. They facilitate more robust trade and commercial ties between countries and allow for a better tariff system, providing a competitive pricing advantage.
Since joining the World Trade Organization (WTO) in 2007, Vietnam has forged several FTAs, 13 out of 15 currently active. In addition, it has agreements with the EU and the United Kingdom. It also has a bilateral trade agreement with the US, meaning the WTO’s standard tariffs can remain in place.
Government Support
The government supports Vietnam’s trade by providing tax incentives that allow companies to choose a model best suited to their business. For example, companies in high-tech industrial zones may be eligible for Corporate Income Tax (CIT) breaks, saving them money at tax time. Other companies may be able to take advantage of tax rate reductions or tax exemptions.
Research and development projects can also write off part of their annual profit before taxes are determined. Additionally, electronics is one of the key agendas in the Vietnamese government’s industrial development plan from 2025 to 2035. Therefore, trade in the country will likely improve as time passes.
Semiconductor Manufacturing
Vietnam’s key role in electronics has caused manufacturers to spill over into the semiconductor industry. As of now, the country has no official active semiconductor factories. However, it is one of nine key industries the government is focusing on developing in the coming years.
Although the industry began over 30 years ago, the country has only one state-owned factory, Z181, which produces semiconductor electronic materials and components.
The industry was active in the 80s, selling products to Eastern European countries between 1979 and 1989, but it has since slowed down, putting it far behind its competitors. Its key challenges are a lack of capital, limited supplies of needed equipment, and a market dominated by major corporations that don’t leave room for newer, smaller businesses.
What Do I Need to Think About When Buying Electronic Supplies in Vietnam?
There are several things to consider before buying electronic supplies from a Vietnamese manufacturer. These are some to think about:
Price: Price is a major consideration in any purchasing decision, especially regarding business. The less a business spends on supplies, the more profit it can make. Therefore, they will want to find a company that offers reasonable prices.
Selection: The supplier should have a wide selection of materials to ensure they create the high-quality products you are looking for. This will ensure you have the inventory you need to make your customers happy.
MOQ: MOQ refers to the minimum order quantity. Most manufacturers will require you to spend a certain amount when purchasing. Generally, the more you buy, the cheaper the project per item. However, if you are starting with the company, it may be best to order less, even if you pay more. That way, if it doesn’t work out, you won’t be stuck with many products you can’t move.
Quality: Buying low-quality products may make your customers happier, but they can also hurt your professional reputation. Therefore, the manufacturer you purchase from should offer high-quality goods.
Shipping and Logistics: If you are getting wholesale products shipped from another country, you must consider how long shipping will take, how much it will cost, and where it will be shipping from and to.
Do They Make Their Products: Some manufacturers sell pre-made products while others make products according to your specifications. If you order a product you want to be manufactured by scratch, provide a bill of materials, a casing design, a PCB schematic, and label files.
Who Are The Best Electronics Manufacturers in Vietnam?
Fab 9
A Print Circuit Board (PCB) is a medium used to connect electronic components in a controlled manner. Fab 9 is a PCB manufacturing specialist in Binh Duong, Vietnam. The company was established in Silicon Valley in 2003 and opened its Vietnam location in 2007.
In addition to PCB, they also manufacture PCBA, a PCB with attached components and boxbuilds to enclose PCBs and PCBAs. They also refurbish equipment. They are skilled in fabrication, assembly, and engineering design layouts.
The company can customize products to meet production demand. It exports products worldwide, with global segments in the US, Europe, Japan, Singapore, and the Philippines.
Fab 9 has an impressive list of clients, including Vishay, Thermo Fisher Scientific, Cavium Networks, Mylan, and more.
Trungnam EMS
Trungnam EMS is a leader in designing, manufacturing, testing, distributing, servicing, and assembling electrical components. Like Fab 9, it specializes in PCB and PCBA assembly, design and engineering, and box builds. It also designs flex and rigid-flex circuits.
The company’s products can be used in several industries and applications, including GPS tracking, gas leak detection, enterprise and cloud, renewable energy, IOT, medical tech, and more. They pride themselves in offering optimal service and logistics. In addition, they implement test and burn practices early on to identify and eliminate defective parts and ensure product reliability.
Trungham was established in 2020 but has grown rapidly. It operates a two-story, 2,000+ square meter facility with three SMT (surface mount facility) lines and a production capacity of up to 7,000,000 products per year.
M1 Communication
M1 Communication, founded in 1945, is a veteran of the electronics manufacturing industry. It is a subsidiary of Viettel Group, Vietnam’s largest telecommunications service provider.
The company is based in Hanoi. Its facility is 5,000 square meters and equipped with modern machinery. This includes four SMT lines, an assembly line, testing equipment, a precision adjustment system, and other measurement devices.
The company’s key electronic products are related to telecommunication. They include PCBAs, mobile phones, electronic components, power devices, wireless products, and optical network termination. The company employs over 800 skilled workers and produces over 7 million products annually.
They specialize in manufacturing, production, and maintenance. Their impressive customer list includes heavy hitters like Panasonic, Vitstronics, and TRI.
East West Manufacturing
East West Manufacturing is a global manufacturer that provides custom design and engineering solutions. They pride themselves on recommending design improvements that reduce manufacturing costs and improve quality and functionality. In addition, they will handle all the shipping and logistics so your goods are delivered to your door.
The company has locations worldwide, including the U.K., Asia, and the United States. Their Vietnam location is in Binh Duong. It is a five-factory complex that is East West’s largest global operation.
Their manufacturing services include:
Medical Device Manufacturing
Electronics
Plastics
Tooling
Assemblies
Logistics
East West was established in 2001. Its clients include EC Motors, ATDC Georgia Tech, and GreenTown. In addition to its main Binh Duong location, it also has factories in Ho Chi Minh City.
TC Group
TC Group was founded in 2007. It specializes in manufacturing and supplying cable television system-related products, including set-top boxes, cable TV equipment, and customized electronics. It also provides other products for production manufacturing, such as PCBA equipment.
The company is based in Ho Chi Minh City but has factories in all major cities in Singapore and Vietnam. They have over 200 workers, and their facilities are over 14000 square feet.
Their main location employs over 30 engineers, technicians, and over 70 factory workers. Their production capacity is 2 x Mounter MX400 with a maximum speed of 46,000 components per hour and 2 x Mounter MX200P with a minimum speed of 17,000. Their clients include Hanel and VTV Cab.
Jing Gong Electronics Vietnam Co., LTD
Jing Gong was founded in 2007. Its parent company, Taiwan Seiko, has over 20 years of experience in electronics manufacturing and supply. It is based in Binh Duong, Vietnam, and offers services abroad.
Like many companies in this article, Jing Gong produces PCBs, but it takes a slightly different approach. For one, it aims to help the client understand how its products work by displaying the application of each circuit. Its boards are versatile and can be used in sound equipment, LED lighting, UPS systems, and electronic appliances.
The company offers various file formats and circuit board options for the companies they work with. Their capabilities stretch beyond PCBs to include:
CNC Routing Machines
UV Machine
V Cut Machine
Precision Type Screen Printing
CCD Fully Auto Printing
Silk Screen Vacuum Printing
Sunching Electronics Vietnam
Sunching Electronics is a PCB expert. Established in 2001, the company strives to offer added value to its customers by providing exceptional service, flexibility, and affordable prices. It is a Taiwanese company currently operating in Binh Duong, Vietnam.
Their factory is ISO 9001 and ISO 1400a certified, and their environmental system is certified. They passed UL for product safety. They are known for their strong R&D abilities. They have been named green partners with Sony and Canon.
Sunching produces various PCB products, including 1-2-layer boards and multilayer boards. It also does PCB assembly and design development. It is a one-stop shop for all things PCB.
In addition to providing great service, they also give back to their community. Since 2011, they have been working with charities to support orphans. They also contribute yearly scholarships for the Dong An High Technology School.
Their impressive customer list includes Omron, NEC, Foster, Canon, Gauss, and many more.
Sao Kim Electronics
Sao Kim Electronics is one of the leading electronics manufacturers in Ho Chi Minh City. Established in 2004, the factory specializes in electronic printed boards, assembly services, and SMT-glued components.
The company produces electronic printed circuit boards (PCBs), bulk PCB production, and circuit board assembly. It uses specially designed production equipment and advanced testing equipment to ensure its products meet high-quality standards. In addition, it can custom-design products based on customer requests.
Their customer list includes Almel and NXP.
Thanh Long JSC
Thanh Long manufactures and assembles PCBs and coil transformers. They are in the HAPLINH Industrial Zone- BAC NINH City, Vietnam. Their factory is conveniently located near the airport to ensure fast shipping.
Their Modernized Standard Factory is over 15,000 square meters and features all-new equipment. It is staffed with a crew of over 300. It has passed certification for ISO 9001, UL, and ISO 14001.
The company prides itself on offering high quality and reliability. It constantly upgrades its facility to meet the latest standards. For example, it has recently improved its service to offer single—and double-sided circuit boards.
Thanh Long’s broad customer base includes electronics, communication, education, and power supplies companies. Notable clients include Samsung, Canon, Mettel, and more.
Final Thoughts on Electronic Manufacturing in Vietnam
Vietnam is a prime supplier of electronic goods. It is home to many manufacturers offering high-quality products at low prices. As a result, it is a top choice for companies that require electronic goods.
Now that you know more about the purchasing process, which electronics goods will you be sourcing from the country?
Cosmo Sourcing // Your Trusted Partner In Vietnam
If you want to source from Vietnam, contact the Cosmo Sourcing team; we have been helping clients source from Vietnam since 2014. Cosmo Sourcing has the skills and the team to find you the best supplier possible. We are also established in China and are among the only companies that can find suppliers in China and Vietnam and pick the one you think is best.
Our Vietnam Sourcing services allow you to access new manufacturers that you would not be able to in China and avoid Tariffs. Our services are designed to do everything to take your idea, turn it into a product, and ship it to the final destination. Cosmo can do everything from creating a product spec sheet to validating, sourcing, ordering, evaluating samples, arranging inspections, finding freight forwarders, quality assurance, negotiations, and shipping. We aim to handle every single step of your business in Vietnam for you.
If you start a new business, finding products and suppliers for your products is one of many things you need to handle. Our services are designed to handle every part of your business in China and Vietnam so you can focus on the rest of growing your own business.
We have helped clients from Fortune 500 companies, brick-and-mortar stores, FBA sellers, and brand-new businesses. So don’t hesitate to contact us and let us know how we can help you.