Introduction to Doing PCB Business in Vietnam
If you’re interested in doing PCB business in Vietnam, it’s important to understand the country’s economy well. Vietnam has undergone significant changes over the past few decades, transitioning from a centrally-planned economy to a market-oriented one.
Historical overview of Vietnam’s economy
Vietnam’s economy has been steadily growing over the past few years, with a Gross Domestic Product (GDP) growth rate of 8.0% in 2022 recovering from the impact of the COVID-19 pandemic. Vietnam’s population is nearly 100 million, and exports largely drive its economy. Some of the country’s main exports include electronics, textiles, and footwear.
Current state of Vietnam’s economy
To understand Vietnam’s economy today, it’s important to look at its recent economic history. Following the Vietnam War and the country’s reunification in 1975, Vietnam adopted a socialist-oriented economy heavily controlled by the government. However, in near the end of the 80s and to the early 1990s, the country began implementing economic reforms known as Đổi Mới (“Renovation”). These reforms included liberalizing the economy, allowing for more foreign investment, and privatizing state-owned enterprises.
Since then, Vietnam’s economy has grown significantly, becoming a major player in the global market. In recent years, Vietnam has signed several free trade agreements. These include, for Asia, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); for the EU, the EU-Vietnam Free Trade Agreement (EVFTA). Both have helped to increase trade and investment in the country.
Vietnam’s economic policies and reforms have created a favorable environment for doing business, with low labor costs, a skilled workforce, and a relatively stable political climate. The government has also implemented various policies and rewards to attract foreign investment, including tax breaks, streamlined bureaucracy, and land-use incentives.
The electronics and PCB industry in Vietnam
The electronics sector in Vietnam is a rapidly growing industry. It’s seen significant development in recent years. The country’s skilled workforce, cheap labor costs, and favorable government policies attract many foreign investors. As a result, Vietnam is one of the fastest-growing electronics manufacturing hubs in the world.
Vietnam’s electronics industry primarily focuses on producing consumer electronics, such as smartphones, tablets, and computers. Still, it also makes electronic components, such as printed circuit boards (PCBs). The industry’s growth has been facilitated by several key players, both domestic and foreign.
Some of the key players include Samsung Electronics, LG Electronics, Intel Corporation, Panasonic Corporation, Foxconn, and Canon. These multinational companies have manufacturing facilities in Vietnam. They contribute to the growth of the electronics industry in the country. In addition to these large corporations, many local electronics manufacturers play an important role. These local companies include Viettel Group, Viettronics, and Hanel.
Overall, Vietnam presents a range of opportunities. Those looking to do business in the country, the PCB industry, and other electronics sectors will find the opportunities worth a try.
Vietnam in the Global Electronics Market: Major Trade Partners
Vietnam’s electronics industry is reputable in the global market. Its major trading partners are countries with high demand for electronics products. The USA, Japan, China, and South Korea are the top trading partners of the electronics sector in Vietnam. These countries are also major exporters of electronics products, and Vietnam’s electronics industry has benefited from their expertise and technology.
America is the largest market for Vietnamese electronics exports, accounting for a significant portion of Vietnam’s electronics exports. Japan is another major trading partner, and its electronics companies have invested in Vietnam for several years. China and South Korea are also significant trading partners. Their electronics companies have been setting up manufacturing facilities in Vietnam to exploit the country’s favorable investment policies and skilled labor force.
Vietnam’s electronics industry is expected to continue its growth trajectory in the coming years. The major trading partners we named are likely to play a significant role in shaping the electronics industry’s future. As the global demand for electronics products continues to rise, Vietnam’s PCB business is poised for growth too.
Top-Rated PCB Manufacturers in Vietnam
We’ll list these companies in alphabetical order:
Công TY TNHH Vector Vietnam
Công TY TNHH Vector Fabrication (Viet Nam) Co., Ltd.
It’s a PCB manufacturer that provides quick-turn prototypes and mass production of high-quality PCBs. They offer a wide range of services and capabilities, including complex stack-up assistance, single, double, and multilayer PCBs up to 38 layers, and load boards and burn-in boards. They also offer fine-pitch, SMT, BGA, and micro-BGA, with fine-line widths and spacing as low as 0.003″. Advanced solder mask, silkscreen, and fully automated AOI are used. They utilize spindle drills for routing. They use copper, tin-lead ENIG, HASL, and lead-free surface finish for surface finish options. Their manufacturing processes are RoHS compliant.
To contact them directly, head to their website: https://vectorfab.vn/#
Jing Gong Electronics Vietnam Co., LTD
They were established in May of 2007 by Taiwan Seiko. They specialize in producing PCBs for appliances and sound equipment using FR-1 and FR-4. The company offers a variety of solder mask options, including yellow, green, and blue. Jing Gong Electronics Vietnam Co., LTD utilizes standard PCB machines such as V-cut and CNC routing machines to produce their PCBs. With a emphasis on QC, Jing Gong Electronics Vietnam Co., LTD is dedicated to providing reliable and efficient PCB manufacturing services.
For more information, visit their website: http://www.jinggong-pcb.com.vn/en.html
Established in 1995, Kimson PCB is also located in Ho Chi Minh. With a team of experienced and professional staff, they specialize in producing single-layer and double-layer PCBs. They’re currently expanding into multilayer PCBs. Additionally, Kimson PCB offers design and processing services for decals, buttons, and silk printing on machines as per customer requirements. Their via size is a minimum of 0.4mm only, so if you are looking for microvias, consider other sources. Beware that their website is in Vietnamese language only.
Get in touch with them; check out their website: https://kimsonpcb.vn/
M1 is a company located in An Khanh, Hoai Duc, Ha Noi, specializing in two business segments: electronics and telecommunication product manufacturing and Electronics Manufacturing Service (EMS-ECM) for other customers. The company strongly focuses on PCBAs, mobile phones, electronic components, telecom, power, terminal devices, ONT, wireless products, and other products such as cameras, smart home devices, HF devices, supply power, networking products, electronic product processing, and VoIP products.
M1’s primary services include manufacturing and EMS-ECM services for electronic and telecommunication products. Be aware, though, that their website is in Japanese.
Find their contact information on their site: https://m1.com.vn/
Located in Nam Tu Liem District, Hanoi, the company has a surprising number of engineers and other professional staff in their keep. They provide various services as a turn-key PCB provider globally. They champion using the best PCB layout services and full metal enclosure assembly for your electronics. For shipping, they uniquely offer a drop-ship option. Another unique offer is their new product design services, which include software design services.
All the details on their products and services, be sure to visit their website: https://meritronics.vn/
Meiko Electronics Co., Ltd.
Meiko is a PCB manufacturer known for producing circuit boards for various industries, including automotive, industrial robotics, smart devices, and more. Their products are used in power trains, safety systems, advanced driver assistance systems (ADAS), lighting systems, and intelligent transportation systems (ITS) for the automotive industry. In addition, they provide PCBs for industrial robots, smart devices, and modules. Meiko offers a range of PCB types, including:
- High-density interconnect (HDI) PCBs
- Heavy copper PCBs
- Metal-based heat dissipation PCBs embedded PCBs
- Double-sided PCB
- High-frequency millimeter-wave PCBs
- M-VIA Flex
- All sorts of flex PCB
- Copper inlay PCB
Meiko’s expertise in producing PCBs for advanced and complex technologies makes them a reliable partner for businesses in various industries. Meiko’s commitment to providing high-quality PCBs and exceptional customer service has earned them fame in the industry. Their PCBs are widely used across various sectors, making them a leading provider of PCB solutions in South Korea.
Looking for their contact information? You can find it on their website: https://www.meiko-elec.com/english/
Sao Kim Electronics
Sao Kim Electronics
Sao Kim Electronics Joint Stock Company is a prominent electronics manufacturer in Ho Chi Minh City, Vietnam. The company was established in 2004 and specialized in producing electronic printed circuits and electronic assembly services, including assembly of SMT glued components. They focus on making PCBs, especially bulk PCB production. As well they have circuit board assembly services. They specialize in single, double-layer, to low-count-multilayer. They have a quality management system certified with ISO-9001 2008.
Get a better sense of their expertise, check out their website: http://www.saokim.vn/
Sunching Electronics Vietnam
Sunching Electronics Vietnam
Sunching Electronics Vietnam is a subsidiary of a Taiwanese company established in 2001. The company is committed to environmental protection and has received Manufacturing QC certifications such as ISO 9001, ISO 14001, and UL certificates. They specialize in producing single-sided, double-sided, and multilayer PCBs up to 16 layers. Additionally, they offer PCB testing services and can serve as a turn-key solution for high-voltage generator electronics.
For a full list of their services, visit their website: https://www.sunchingpcb.com/
Unigen Corporation is a company that specializes in providing industrial-grade memory modules and storage solutions, such as DDR4, NVDIMM, 2.5″ SATA SSD, and PCIe M.2 SSD. They also offer various PCBs, including memory module PCBs, SSD PCBs for enterprises, embedded PCBs, medical PCBs, and IoT PCBs. In addition, Unigen Corporation can also act as an EMS and an OEM for other companies. With a focus on high-quality products, Unigen Corporation strives to provide reliable and efficient solutions for its customers.
Interested in working with them? Their website is a great place to start: https://www.unigen.com/
Vexos Electronic Manufacturing Services
Vexos is a global Electronics Manufacturing Services (EMS) and Custom Material Solutions (CMS) company that provides end-to-end supply chain management solutions for Original Equipment Manufacturers (OEMs). They specialize in mid to low-volume, high-mix, and high-complexity products. The company has a local factory in Vietnam that serves as an EMS, providing New Product Introduction (NPI) and component sourcing services.
Want learn more about them? Their website: https://vexos.com/
An example of a Vietnamese PCB business is shown in this video:
Investment Opportunities for PCB Businesses in Vietnam
Engaging with the PCB business in Vietnam can be a lucrative opportunity for you. We give the reasons why in this section:
Foreign direct investment (FDI) in Vietnam
FDI in Vietnam has been on the rise, with electronics being one of the top sectors for foreign investors.
- A stable political environment encourages FDI.
- Attractive tax incentives include corporate income tax exemptions or reductions, import tax exemptions or deductions, and value-added tax (VAT) exemptions or reductions.
- Preferential treatment in land use, site clearance, and access to credit.
- Government partnering with private sector companies through public-private partnerships (PPPs)
Investment incentives for foreign businesses
- Foreign electronics businesses have tax breaks, land use incentives, and import/export duty exemptions.
- Investors in electronics manufacturing, research and development, and high-tech industries are eligible for additional incentives.
- The government also offers incentives for investments in economically disadvantaged areas.
Ease of getting business licenses and permits
Relatively easy to get your business running in this country because:
- Online systems in place for businesses to apply for licenses and permits
- Simplified application forms and requirements, making it easier for businesses to understand and meet the necessary criteria.
- Forms are in the English language for international clients.
- Consolidation of business requirements and create a more unified process.
Opportunities in Vietnam’s emerging electronics industries
Internet of Things (IoT) devices and artificial intelligence (AI) applications are several emerging industries worth considering for investment.
The government has prioritized the development of these industries and offers incentives to support their growth.
Labor Matters in Vietnam
Let’s evaluate the country’s labor force in terms of English competency, technical skills in electronics, and IT knowledge:
While Vietnam has improved its English competency recently, China still has an advantage in this area. China’s larger population and more developed education system have resulted in more English speakers in the workforce.
Technical skills in electronics
In addition, compared to Vietnam, China has another edge. There is an area in China called Shenzhen. Its alias is the “Silicon Valley” of China. The place has a significant concentration of PCB manufacturers.
Not like Ho Chi Minh, Shenzhen’s well-established infrastructure and logistics system makes it an ideal location for electronics manufacturing. Shenzhen’s PCB manufacturers have also benefited from the city’s proximity to a large suppliers network, allowing easy access to raw materials and components necessary for PCB production. Additionally, Shenzhen has a highly competitive and dynamic electronics industry, which has resulted in a continuous flow of innovation and improvement in PCB manufacturing processes.
Speaking of which, China has a major advantage over Vietnam in terms of skilled workers. Chinese workers have a better IT knowledge base. The Chinese government actively invests in IT deployment and development. It has placed a strong emphasis on IT education. As a result, Chinese workers are better equipped with skills and know-how to operate modern IT systems and tools.
The Vietnamese labor market is heavily regulated, and the country has a well-established labor union system representing workers’ rights and interests. When establishing a business partnership in Vietnam, be aware of the fact that all employees have the right to join a union.
Businesses with more than 10 employees are required to have a union.
Unions in Vietnam have the right to negotiate collective bargaining agreements on behalf of their members. These agreements typically cover wages, benefits, and working conditions.
If collective bargaining negotiations break down, unions have the right to organize strikes and other forms of industrial action. However, strikes in Vietnam are strictly regulated by the government, and specific procedures must be followed to ensure they are legal. Finally, unions also play a role in resolving labor disputes between employees and employers.
However, Vietnam offers some advantages over China. For example, Vietnam has lower labor costs and a more flexible business environment. Additionally, Vietnam’s electronics industry is still growing, which means there may be opportunities for businesses to get in on the ground floor and establish themselves as leaders in the market.
Lastly, as for workforce size, China has a much larger workforce than Vietnam. This factor may be a consideration for your company if you require large numbers of workers for massive production.
Sustainability Issues in Vietnam
Vietnam has made significant progress in recent years toward improving its sustainability practices. However, there’s work to be done. As a business owner, it’s important to be aware of the sustainability issues in Vietnam and take steps to address them.
Environmental care concerns
Air Pollution: Vietnam’s air quality is among the worst in the world, particularly in urban areas. This is primarily due to industrial activity and transportation emissions.
Water Pollution: Vietnam’s waterways have been heavily polluted by industrial and agricultural activities, affecting the health of local communities and wildlife.
Waste Management: Vietnam faces significant challenges in managing its waste, with limited infrastructure and resources for recycling and disposal.
Deforestation: Vietnam’s forests have been heavily impacted by deforestation, both for industrial use and agricultural expansion.
Corporate Social Responsibility (CSR)
Labor Practices: As a business partner in Vietnam, you must ensure workers are treated fairly and have safe working conditions.
Supply Chain Transparency: Your supply chain should be transparent and ethical, and you’re not contributing to environmental or human rights abuses.
Community Engagement: Take the responsibility to engage with and give back to the local communities where you operate.
Sustainable Practices: Implementing sustainable practices such as energy efficiency, waste reduction, and responsible sourcing can help reduce your eco footprint and improve your reputation as a socially responsible business partner.
A Reliable Circuit Board Manufacturer
Best Service and Cost: Choosing a PCB Manufacturer
When choosing a PCB manufacturer, there are many factors to consider, including quality, cost, and service. While Vietnam may seem like an attractive option due to its lower labor costs, some drawbacks include potential language barriers, cultural differences, and shipping costs.
So why not consider a great alternative from Shenzhen, China?
An Efficient Alternative: PCBMay
Quality: PCBMay has a strict quality control process and uses only the highest-quality materials to ensure that your PCBs meet your specifications.
Cost: We offer competitive pricing for its services. Its efficient manufacturing processes mean we can provide lower prices without sacrificing quality.
Customer Service: We’ve got a dedicated customer service team available to answer any questions and provide support throughout the manufacturing process.
Logistics: Shenzhen has a well-established logistics system, so shipping times and costs are often more efficient than those from Vietnam.
In conclusion, while Vietnam may seem like an attractive option for PCB manufacturing, there are many benefits to choosing PCBMay from Shenzhen, China. You will receive high-class PCBs at a competitive price by partnering with us. In addition, we’ll support your needs throughout the manufacturing process.
If you want to learn more, contact us today! Let’s deal!