CNC machining in Vietnam and a strong shifting from China to Vietnam

CNC machining in Vietnam at present and future

At present, CNC machining in Vietnam is a growing industry that has attracted a lot of interest from both domestic and foreign companies. The country has a skilled labor force and a competitive cost structure, making it an attractive location for manufacturing. Many companies are turning to Vietnam for CNC machining services due to its lower labor costs compared to other countries in the region.

Since September 2021, CNC machining in Vietnam has been experiencing significant growth and development. Vietnam has emerged as a competitive player in the global manufacturing industry, attracting foreign investment and establishing itself as a hub for various industries, including CNC machining.

Vietnam’s government has also implemented policies to promote the development of the manufacturing industry, including CNC machining. The country has invested in infrastructure and technology to support the growth of the industry. Additionally, the government has established economic zones and industrial parks where companies can set up their manufacturing facilities.

The future of CNC machining in Vietnam looks bright. The country’s strategic location in Southeast Asia, young and highly skilled workforce, and favorable business environment all contribute to its potential for continued growth. The government has set an ambitious target to increase the contribution of the manufacturing sector to the country’s GDP, which bodes well for the future of CNC machining in Vietnam.

Moreover, as the world shifts towards Industry 4.0 and the use of advanced technology, Vietnam is well-positioned to become a leading hub for CNC machining. The country has invested in research and development and has developed a strong base of engineering talent. Vietnam is also seen as a potential alternative to China as a manufacturing hub, which could further boost the growth of the CNC machining industry in the country.

Overall, the present and future of CNC machining in Vietnam are positive, and the industry is expected to continue growing in the coming years.

CNC machining in Vietnam is benefited from the business shifting from China to Vietnam

There are several reasons why shifting CNC machining from China to Vietnam:

Lower labor costs:

Vietnam has lower labor costs compared to China, making it more cost-effective for companies to manufacture their products. This cost advantage enables companies to produce goods at a lower price point, which can translate to increased profits.

Skilled workforce:

Vietnam has a highly skilled workforce, with a large pool of young people who are eager to learn new skills. The country has invested heavily in education and training programs, ensuring that its workers are equipped with the necessary skills to operate CNC machines and other manufacturing equipment.

Political and economic stability:

Vietnam has a stable political environment and a growing economy, which makes it an attractive destination for foreign investment. The government has implemented policies to promote the development of the manufacturing industry, including CNC machining, and has established economic zones and industrial parks to attract foreign investors.

Strategic location:

Vietnam is located in Southeast Asia and has access to major shipping routes, making it an ideal location for manufacturing and exporting goods to other countries in the region and beyond.

Alternative to China:

With rising labor costs and increasing competition in China, Vietnam is seen as a potential alternative for companies looking to shift their manufacturing operations. This trend has been accelerated by the US-China trade war, which has prompted many companies to diversify their supply chains and reduce their reliance on China.

Overall, shifting CNC machining from China to Vietnam is a good trend because it offers cost advantages, access to a skilled workforce, and a stable political and economic environment. As the trend continues, Vietnam is expected to become an increasingly important hub for manufacturing and CNC machining.

Companies that have successfully shifted their operations from China to Vietnam

There are several examples of companies that have successfully shifted their operations from China to Vietnam:

1. Foxconn: Foxconn, one of the largest contract manufacturers in the world, has shifted some of its production from China to Vietnam. The company has built several factories in Vietnam and plans to invest $1 billion in the country to expand its operations.
2. Samsung: Samsung has shifted some of its production from China to Vietnam in recent years. The company has built several factories in Vietnam and plans to invest $5 billion in the country by 2020.
3. Intel: Intel has shifted some of its production from China to Vietnam. The company has built a factory in Ho Chi Minh City and plans to invest $1 billion in the country over the next few years.
4. Nike: Nike has shifted some of its production from China to Vietnam. The company has built several factories in Vietnam and plans to invest $215 million in the country over the next five years.
5. Adidas: Adidas has shifted some of its production from China to Vietnam. The company has built several factories in Vietnam and plans to invest $1 billion in the country over the next several years.

These companies have all chosen Vietnam as a location for their operations due to the country’s lower labor costs, skilled workforce, and favorable business environment. As more companies look to shift their manufacturing operations from China to Vietnam, CNC machining in Vietnam is expected to continue to grow and thrive.

TDB Hanoi provides services of CNC machining in Vietnam, including milling, turning, Swiss turning, and sheet metal fabrication.

With precision machining centers, combined with other advanced capabilities and an experienced team, we can handle all types of CNC machining parts in both metal and plastic materials.

Whether you need production parts machining, TDB’s CNC machining services will be your best choice. Leave us an RFQ now!