How Our Vietnam Facility Provides Cost-Saving Options

Providing Quality, Cost-Effective Injection Molding from Our Vietnam Facility

In addition to our U.S. locations, we also have an overseas injection molding facility to best serve our customers. Our Vietnam injection molding facility allows us to provide cost-competitive options to our clients. Injection molding, assembly, and secondary operations are done with speed and the quality-first attitude seen across our entire organization.

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In recent years, Vietnam has become a formidable competitor to Chinese manufacturing, offering valuable benefits. The country has seen explosive growth, with exports to the U.S. surging, supported by a heavy national investment in infrastructure, a stable political system, free trade agreements, and a dynamic workforce.

Capabilities

Since the facility opened in , it has grown to 250 employees, three assembly lines, and seven injection molding machines ranging from 140 US tons to 500 US tons. We can mold parts from small gears up to a 12in x 12in x 12in part.

In addition, secondary operations, such as pad printing, sonic welding, and labeling, are expertly executed by trained and attentive staff. We have a close relationship with a Vietnamese vendor for PCBs, but we have an electrical engineer on staff and a team to assemble electronic mechanisms.

Shipping to the U.S.

Many businesses in the U.S. have seen issues with labor shortages creating bottlenecks, leading to difficulty getting parts. One of the benefits of working in Vietnam is greater access to labor, allowing us to turn around large orders quickly. We have two to four containers of parts shipped to the States every month, so shipping is cost competitive, as well. Plus, tariffs for Vietnam are much lower than China.

Small mechanisms ship well, with eight thousand fitting on a container. Larger injection molded pieces sometimes don’t fit as tightly, so you are shipping more air. So, some customers may choose to have mechanisms made in Vietnam and have housing molded in one of our U.S. facilities.

High-Quality Workmanship

When some people think of overseas work, they immediately worry about the quality and if communication will impact it. Our Vietnam facility is U.S.-run and ISO : certified, so stringent quality standards are upheld. Management speaks English and Vietnamese, so there are no language barriers between us and our customers and management and employees. The components you get from our Vietnam facility will always meet your requirements.

Look to Deluxe Plastics

If you are looking to pull your work from China but want the cost savings from manufacturing abroad with the ease and expertise of an American company, look no further than Deluxe Plastics. When you work with us, you’ll receive high-quality, streamlined production from a talented team who will provide outstanding support and customer service.

China vs. Vietnam: Where Should You Manufacture Your Injection Molds?

In today’s global manufacturing landscape, companies are increasingly facing the decision of whether to source their injection molds from China or Vietnam. Both countries offer unique advantages, but each comes with its own set of challenges. So, which is the right choice for your business?

In this article, we'll break down the pros and cons of manufacturing injection molds in both China and Vietnam, considering factors such as cost, quality, lead time, and geopolitical risks. Whether you're a small startup or a large corporation, this guide will help you make an informed decision about where to place your injection molding needs.

1. Why Manufacturing in China Has Been the Standard

China has long been the go-to destination for manufacturing, and for good reason. As the world’s factory, it has developed a robust infrastructure, a highly skilled workforce, and a massive network of suppliers and manufacturers. For injection mold manufacturers, China offers some compelling benefits:

1.1 Cost Efficiency

China's economy of scale has made it possible for manufacturers to provide extremely competitive prices, especially when dealing with large volumes. The cost of labor in China is lower than in many Western countries, which translates to lower production costs for companies sourcing molds. Additionally, China has a well-established supply chain for both raw materials and mold components, further reducing costs.

1.2 Established Expertise

China is home to some of the most experienced mold makers in the world. With decades of experience, Chinese manufacturers have honed their craft in producing high-quality molds for industries ranging from automotive to consumer electronics. If your business requires intricate designs or large-scale production, China's mold manufacturing capabilities are hard to beat.

1.3 Speed and Flexibility

China is known for its fast turnaround times. The vast network of suppliers and manufacturers can quickly source components and tools, ensuring rapid production schedules. Furthermore, China's flexibility in accommodating different production runs, whether small batches or large orders, gives companies an edge when dealing with shifting market demands.

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2. Why Manufacturing in Vietnam Is Gaining Popularity

While China has dominated manufacturing for decades, Vietnam is quickly becoming a competitive player in the injection molding industry. With its growing economy and manufacturing infrastructure, Vietnam offers several benefits for businesses looking to diversify their supply chain or reduce costs.

2.1 Lower Labor Costs

Vietnam has lower labor costs than China, especially in certain regions. As a result, manufacturing in Vietnam can be more cost-effective, particularly for businesses with tight budgets or those that want to reduce production costs without compromising quality. The labor market in Vietnam is growing, with a skilled workforce trained in modern manufacturing techniques, including injection molding.

2.2 Trade Agreements and Tariff Benefits

Vietnam benefits from numerous free trade agreements, such as the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and the EU-Vietnam Free Trade Agreement. These agreements make it easier for businesses to export goods from Vietnam with lower tariffs. In contrast, China faces higher tariffs due to ongoing trade tensions with several countries, particularly the United States. For businesses looking to avoid tariffs, Vietnam can be a smart alternative.

2.3 Growing Injection Molding Expertise

Vietnam’s injection molding capabilities are expanding rapidly. While the country might not yet match China’s level of expertise, many manufacturers in Vietnam are investing heavily in state-of-the-art equipment and training. The mold-making industry in Vietnam is growing, and businesses can find a competitive selection of manufacturers who specialize in high-quality molds at affordable prices.

2.4 Proximity to China and Regional Integration

Vietnam’s proximity to China provides some logistical advantages, especially for companies already sourcing parts from Chinese suppliers. The two countries have a well-established trade relationship, making it easy to coordinate shipments and supply chains between the two nations. Additionally, Vietnam’s membership in regional trade agreements makes it an attractive manufacturing hub for companies looking to reach markets across Asia.

3. Key Factors to Consider When Choosing Between China and Vietnam for Injection Mold Manufacturing

While both countries offer significant advantages, the right choice will depend on your specific needs. Here are the key factors to consider:

3.1 Lead Times and Production Schedules

China offers unparalleled speed in terms of production and shipping. If time is critical, China’s infrastructure and network of suppliers can usually meet tight deadlines. Vietnam, however, has a smaller manufacturing base, which might result in longer lead times, particularly for more complex molds.

3.2 Product Complexity

China’s manufacturers are particularly skilled at producing complex, high-precision molds. If your product requires intricate designs, advanced features, or large production runs, China is likely your best bet. Vietnam is making strides, but for highly specialized or complex injection molds, Chinese manufacturers might have the edge.

3.3 Political and Geopolitical Risks

Geopolitical risks can impact manufacturing decisions. Trade tensions and tariffs between China and other countries (especially the U.S.) are a significant concern for many businesses. Vietnam, on the other hand, has become a popular alternative due to its relatively stable political environment and favorable trade agreements. If your company wants to diversify its supply chain to minimize risks from a potential trade war, Vietnam might be the safer bet.

3.4 Supply Chain and Logistics

China’s well-established infrastructure means that shipping and logistics are typically smooth and efficient. The country has major ports, airports, and transportation networks that make moving goods easier and more affordable. Vietnam’s infrastructure is still developing, although it has made significant strides in recent years. Depending on your location, you may find that shipping from Vietnam is less efficient than from China.

4. The Bottom Line: Which Country is Right for Your Injection Mold Manufacturing?

Ultimately, the decision between China and Vietnam for injection mold manufacturing depends on your business’s needs, priorities, and long-term goals.

• Choose China if you need large-scale production, complex molds, fast turnaround times, and access to an experienced workforce.
• Choose Vietnam if you want to take advantage of lower labor costs, favorable trade agreements, and a growing manufacturing industry with increasing expertise.

By carefully evaluating your company’s specific requirements, you can make an informed decision that will help you achieve the best results in both cost and quality for your injection molding projects.

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