What Buyers Should Know Before Choosing an OEM Partner in Vietnam

Your essential guide to finding the right manufacturing partner—what to look for, what to avoid, and why it makes all the difference.

Introduction: Why Vietnam Is on Every Global Buyer’s Radar

Over the past decade, Vietnam has rapidly evolved into a manufacturing hub of choice. With its competitive labor costs, growing infrastructure, and politically stable environment, the country is now a preferred destination for Original Equipment Manufacturing (OEM)—particularly in sectors like packaging, personal care, automotive components, and consumer goods.

But opportunity comes with challenges. Not all OEM partners are created equal. For international buyers unfamiliar with Vietnam’s industrial landscape, choosing the wrong partner can result in costly delays, quality issues, or even supply chain breakdowns.

Whether you're a procurement officer for a multinational company or a startup launching your first product, this guide will walk you through the key factors to consider before partnering with a Vietnamese OEM manufacturer.

1. Experience & Reputation: The Foundation of a Reliable OEM

Start by evaluating how well the OEM understands your industry and their track record of success.

• Years in operation: Manufacturers with over a decade of experience typically have robust quality control systems and supply chain processes in place.

• Industry specialization: Choose a partner familiar with your sector’s requirements—be it packaging, automotive components, or consumer products.

• Client portfolio: Past collaborations with global brands indicate reliability, consistency, and trustworthiness.

Example – New Edge:Founded in 2007, New Edge has built a strong presence in providing essential electronic components, such as tapes, rubber, and other packaging materials. The company has earned trust from well-known brands such as Jabil, Bosch, and FPT, showcasing both technical capabilities and consistency in delivering quality products.

An OEM products manufacturing by New Edge

2. Material Expertise & Technical Insight

OEM success isn’t just about making products—it’s about choosing the right materials and optimizing for function, safety, and cost-efficiency.

• Material specialization: Look for OEMs with expertise in key materials such as PU foam, EVA, IXPE, EPE, rubber foam, and specialized tapes for electronics packaging.

• Material consulting: Can the manufacturer recommend alternatives based on your performance, cost, or regulatory needs?

• Compliance knowledge: Do they understand international material compliance standards like RoHS or REACH?

Why this matters: Imagine your shipment arrives damaged due to subpar anti-static or protective foam. The right OEM partner would have flagged that issue early—saving you losses and protecting your brand.

3. Certifications & Compliance: More Than Just Paperwork

Global certifications signal a manufacturer’s commitment to quality, environmental responsibility, and safety. They’re non-negotiable when selling to international markets.

Look for:

ISO 9001:2015 – Ensures consistent product quality and process control.

ISO 14001 – Demonstrates environmental responsibility.

RoHS/REACH – Critical for compliance with EU and U.S. markets.

SMETA Membership – Indicates active engagement in industry best practices and ethical standards

4. Comparative Data: OEM Consumption in Vietnam vs. Other Key Markets

To make an informed decision, it’s crucial to understand the landscape of OEM consumption in different regions. Below is a comparison of OEM consumption trends in Vietnam, China, and Thailand, specifically within the packaging sector.

OEM Consumption in Packaging Industry (2024 Estimations)

Country	Market Size (USD Billion)	Growth Rate (2023-2024)	Key Industry Focus
Vietnam	3.5	6%	Packaging materials (foam, tape, rubber)
China	15.0	4%	Electronics, Automotive, Packaging
Thailand	5.2	5.2%	Packaging, Food & Beverage, Automotive

Vietnam has become a strong competitor to larger markets like China and Thailand in the packaging sector, with steady growth driven by demand in both domestic and international markets. The country’s growth rate of 6% in 2024 reflects its increasing attractiveness for businesses looking to source packaging materials like foam, tape, and rubber for various industries, including automotive and electronics.

China remains the dominant market for OEM in electronics and automotive manufacturing. However, Vietnam's rising cost-effectiveness and specialized manufacturing capabilities in certain materials make it a viable alternative for certain packaging needs, especially for businesses concerned about cost pressures in China.

Thailand offers strong packaging solutions and is a key player in the food & beverage and automotive sectors, though its growth rate is slightly lower than Vietnam’s.

5. Market Dynamics: What Sets Vietnam Apart

Vietnam offers several advantages over other Asian manufacturing hubs. Here’s a deeper dive into what makes Vietnam attractive for OEM outsourcing:

Cost Efficiency

• Labor Costs: Vietnam remains one of the most cost-effective countries for labor, particularly in comparison with China. For example, the average hourly wage in Vietnam is approximately $3, significantly lower than China’s $6.5 per hour. This cost-saving is especially critical for labor-intensive manufacturing processes.

• Material Costs: Due to Vietnam’s growing manufacturing capabilities, material costs (e.g., foam, rubber) are highly competitive. Vietnam’s proximity to major suppliers in Southeast Asia also helps reduce shipping costs for raw materials.

Supply Chain & Infrastructure Development

• Logistics: Vietnam has invested heavily in improving its infrastructure, particularly in key export hubs like Ho Chi Minh City and Hai Phong. This makes it easier for companies to source materials, manage inventory, and distribute products globally. The growth of e-commerce in Vietnam has also contributed to the evolution of more efficient supply chain systems.

• Trade Agreements: Vietnam’s extensive network of trade agreements, such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), makes it easier for businesses to export products at competitive rates, enhancing the overall cost-effectiveness of choosing Vietnam as an OEM partner.

Skilled Labor and Education

• Vietnam’s growing investment in education and technical skills development has created a workforce adept in various industries, from electronics and automotive components to packaging. This emphasis on training ensures that manufacturers in Vietnam stay ahead of global trends, from innovative packaging designs to the latest sustainability practices.

6. Risk Management: Mitigating Challenges When Partnering with Vietnamese OEMs

While Vietnam offers numerous advantages, there are still some risks to consider:

• Political Risk: Although the political environment is generally stable, businesses should stay updated on potential changes in regulations, trade policies, and taxation. Having a local legal team or advisor can help navigate these complexities.

• Quality Control: It’s important to ensure that your OEM partner adheres to rigorous quality standards. Random audits, sample testing, and quality certifications like ISO 9001 are essential for mitigating quality risks.

• Supply Chain Disruptions: Though logistics in Vietnam have improved, disruptions in global shipping or raw material shortages can affect production timelines. Building a buffer stock or working closely with the OEM on contingency plans can help reduce this risk.

How the Right Partner Can Make All the Difference

Choosing the right OEM partner in Vietnam involves more than just finding a manufacturer; it’s about forging a strategic partnership that ensures quality, compliance, and long-term success. Whether you’re sourcing materials for packaging, electronics, or automotive components, ensuring your partner has the right experience, material expertise, and certifications will help mitigate risks and set you on the path to success.

With Vietnam’s growing industry, competitive pricing, and skilled workforce, it is poised to continue rising as a top destination for OEM outsourcing, particularly in the packaging sector. By focusing on the right factors—such as experience, material expertise, certifications, and market dynamics—you can build a successful, sustainable partnership with a Vietnamese OEM that drives your business forward.

P/S: New Edge News