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Vietnam Products: The Benefits of Outsourced Manufacturing

February 29, 2024

vietnam factoryTrade relations between Vietnam and the U.S. have strengthened immensely in recent years. In 2022, U.S. imports from Vietnam increased 25.1% year over year. Highly skilled labor at a low cost is one of the many reasons why IPS has turned to Vietnam for manufacturing facilities to design and manufacture a wide range of custom products.  


Vietnam Trade Agreements

Vietnam is a member of the Association of Southeast Asian Nations (ASEAN) Free Trade Area (AFTA). AFTA is a commitment to making Southeast Asia a competitive trading area through bilateral free trade agreements. The United State – Vietnam Bilateral Trade Agreement (BTA) includes trades in products, including those that could be manufactured through a partner manufacturer to IPS in Vietnam. This makes Vietnam a competitive trading partner to export goods to the U.S.


Benefits of Vietnam Manufacturing

There are plenty of reasons that make Vietnam an ideal country for IPS to help you outsource your product manufacturing. Skilled workforce, low labor costs compared to the U.S., and favorable trade agreements are only a few reasons that contribute to Vietnam’s manufacturing sector boom.


Cost of Manufacturing Goods

In recent years, companies in the U.S. have turned to Vietnam for manufacturing due to low labor costs. When working with IPS, the cost of labor is factored into the unit price that you receive in your quote for your product. While the cost of labor for manufacturing varies, the average cost of labor for a manufacturing job in Vietnam is about $2.73 per hour  (US dollars). In China, this number is almost double at around $5.50 per hour in USD. Outsourcing to Vietnam could save you money in labor costs compared to other countries, including the United States, where the federal minimum wage is $7.25 per hour. Vietnam labor could be beneficial when receiving a price quote from IPS.  


Supply Chains

Shifts in global supply chains have put Vietnam in an ideal spot for manufacturing. Rapid growth and a stable economy have placed them favorably on the list of competitive global supply chains. Because of this, IPS has the ability to choose manufacturing partners in Vietnam from a strong selection, as the country’s manufacturing sector continues to both increase and improve.  


Highly Skilled Workforce

The country’s growing manufacturing sector means there is an abundance of highly skilled laborers found at their manufacturing facilities. The Vietnamese manufacturing workforce is expertly trained to handle the mass production of your products. IPS is committed to quality assurance at all of our facilities with factory inspections and both in-line and post production quality control. We only work with trusted suppliers whom we’ve built a strong partnership with, ensuring your business that your product is in good hands before it reaches your customers.  


How to Outsource to Vietnam Through IPS

IPS makes it easy to outsource your manufacturing and product design to Vietnam. Outsourcing to Vietnam requires a wide level of steps from finding a manufacturing facility to understanding how your product gets through Vietnam customs clearance. Our team at IPS has strong connections to manufacturing facilities overseas, taking away the struggle of trying to find an ideal location to mass produce your product. Language barriers also make it difficult to communicate when outsourcing product manufacturing to another country. With IPS, you communicate with our United States-based team for design, engineering, prototyping, manufacturing, and exporting/importing, making IPS a “one-stop-shop” for producing custom products at a lower cost. Working with IPS helps you reap the benefits of Vietnamese manufacturing without having to handle the process yourself.


Products Outsourced to Vietnam

What products can Vietnam make? The possibilities are limitless. If you have a concept for a product that you would like designed or manufactured, contact our team to discuss the next steps to getting that idea off the ground. We work with Vietnamese manufacturing facilities that can make products from custom molded plastics, stainless steel, cut-and-sew, wood, foam, rubber and more. IPS is an ideal solution for businesses that want to mass produce products at a fraction of the cost compared to the U.S. 

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