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White Paper: Contract Manufacturing in Vietnam Increases Profitbaility |OEMs can Lower Labor Costs, Improve Quality, and Protect IP with the Right Partner

Vietnam has emerged as a leader for outsourced manufacturing among southeast Asian nations due to its exceptional cost competitiveness and consistent high quality. Vietnam’s location — adjacent to established supply chains across the border it shares with China — provides original equipment manufacturers (OEMs) with alternative sourcing as the costs of doing business in China escalate. Hourly labor rates in Vietnam are significantly lower than other nearby countries; and the nation has implemented strict laws and regulations to protect the intellectual property of foreign companies. The marketplace and political conditions together have enabled Vietnam to sustain the highest economic growth rate in the world since 2000. Understanding Vietnam’s unique financial advantages can help OEMs that outsource manufacturing to achieve a lower total cost of ownership that fuels higher profits and growth.



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