Contract Manufacturing in Vietnam Increases Profitability

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.