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Difference between Vietnam and China Manufacturing

China is often the first place that comes to mind when discussing offshore manufacturing. More recently, however, Vietnam has been making a name for itself as a potentially lucrative choice.  While China manufacturing levels are still incredibly high, Vietnam’s share of this competitive market is growing fast due in part to the tariffs placed on items manufactured in China and imported into the USA.

Below are some things you need to know about China vs. Vietnam.

China Manufacturing Is Still Very Much Alive

Despite the recent tariffs and the rising prices from China’s increases in wages, the country is still a major destination for manufacturing. Some of the factors that differentiate it from its new competitor, Vietnam, are:

Powerful Manufacturing Infrastructure

China boasts a much more thoroughly developed manufacturing infrastructure making it easier to manufacture and ship merchandise from within the country. Manufacturing certain goods in Vietnam may take more in-house investment in infrastructure to get a project started.

Robust Workforce

China’s large population helps ensure it will dominate the market in terms of the numbers of skilled workers.  That is sharply contrasted with Vietnam’s position which has significantly fewer people to engage in the workforce in comparison.

Vietnam, the New Kid on the Block: Some differences between China and Vietnam

Vietnam is a direct competitor to China as a manufacturing base and has several distinctions that make it an intriguing choice.

Cost of Labor

The exceptionally low cost of labor is one of the major advantages of moving manufacturing operations to Vietnam, however, that is far from the only advantage over China manufacturing.

Political Stability

Vietnam’s stability is one of the reasons firms do not manufacture in countries with political unrest. The political stability enjoyed by Vietnam is one of its most important and strategic advantages. Their advantages in stability extend into currency as well.

Policy and Licensing

Policies regarding manufacturing licensing are also a key advantage for Vietnam. Obtaining the necessary licensing to manufacture in Vietnam is noticeably simpler which makes it easier to do business there.

Narrowing It Down: Making the Choice Between China Manufacturing and Vietnam

When you’re trying to decide between China and Vietnam for your manufacturing operations you must consider several factors. It comes down to infrastructure, workforce availability, policy, and stability. Top manufacturing liaison companies like ITI Manufacturing can help you make the best choice.  Contact one of our experts today for more information and to learn if China or Vietnam manufacturing is right for your product.

We’ve been helping US-based companies successfully manufacture offshore with top-quality factories in Asia since 1974. Put our expertise to the test by calling toll-free at 1-888-574-6823.

By |2019-06-24T11:38:40-05:00June 24th, 2019|Chinese Manufacturing|

About the Author:

Avatar for Mike Stewart
Mike Stewart joined ITI in 2002 and is Vice President of Business Development. He has a BA in Business and Journalism from SFA University. Before joining ITI Mike sold, installed, and trained businesses in comprehensive business computer systems in the medical and automotive industries and served as Executive Vice President of a video news magazine production company.