Should I Move My Offshore Manufacturing to Vietnam?

Manufacturing is an intensely competitive endeavor. Any edge over the competition is a win.  Consequently, with the current tariff situation, many American companies are considering moving their manufacturing out of China.  So much so, that many are considering Vietnam for their offshore manufacturing. Below are some things to consider if you are looking at moving your production to Vietnam.

Why Vietnam Is the Premier Choice for Overseas Manufacturing

While China has taken the spotlight in offshore manufacturing for well over a decade you shouldn’t necessarily discount other options. The cost to manufacture in China has increased over the years as wages have increased as has the standard of living. Yet, the increases in wages is a good thing since everyone wants to have a higher standard of living. These cost increases have caused some American companies to search for less expensive manufacturing, however.  And in some cases, Vietnam fits the bill nicely.

You could follow Nike’s example – 42% of their product is from Vietnam. Sourcing manufactured product from Vietnam has become more and more cost-effective in many cases.

Here are the other major reasons companies may want to give Vietnam a look:

Offshore Manufacturing Specialties

Vietnam’s manufacturing specialties make it an ideal choice for the manufacture of certain goods including electronic machinery, knit clothing, footwear, optical, and medical equipment.

Avoid the Recent Tariff Storm

America’s recent increase of the tariffs on goods imported from China is a side effect of some of the larger points of contention between the two nations.  The increased tariffs will certainly continue if the two countries can’t “make a deal”. The heavy tariffs have caused many apparel firms to move their production to Vietnam.

The Process of Moving Your Offshore Manufacturing to Vietnam

Making the transition to Vietnam can be difficult without experienced guidance. Fortunately, trusted business liaisons like ITI Manufacturing have deep experience in Asian manufacturing and what it takes to move from one country to another.

Although ITI’s corporate headquarters is in Houston, Texas, we serve US-based companies globally. And with many years of experience under our belt, we’re arguably the best choice for manufacturers interested in making the switch. So, if you’re ready to start enjoying the many benefits of producing in Vietnam, connect with us today. We can help your company work through any offshore manufacturing challenge.

Playing It Safe: How to Make the Transition

Sometimes offshore factories attempt to “slow walk” a company leaving their production process. These factories will sometimes hold on to custom designed molds and not send them back unless you have an enforceable agreement.

We Are Pleased to Assist in Your Transition

Complications such as these can sometimes make an already difficult and unpleasant situation of offshore manufacturing even worse.  Issues “on the ground” at the factory, make it even more worthwhile to have an experienced partner who can help your firm navigate a needed transition.

Reduced project development costs and the elimination of the cost of searching for factories are two more reasons to consider working with ITI.  Competitive pricing, quality assurance, and timely delivery are ITI Manufacturing’s mottos.

Explore your options with ITI Manufacturing today. Call us at (281) 242-7030.

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