Metal Forming Outsourcing to Vietnam in 2025
Table of Contents
The Rise of Vietnam as a Metal Forming & Manufacturing Hub
Vietnam’s Competitive Edge in Sheet Metal Forming Outsourcing
Metal forming outsourcing to Vietnam in 2025 is gaining momentum as companies seek cost-effective and high-quality alternatives. The global landscape for metal processing is undergoing a significant shift. In 2025, Vietnam is emerging as a leading alternative to traditional manufacturing powerhouses like China and India. With rising labor costs, increasing trade tariffs, and a growing emphasis on supply chain diversification, US and European companies are seeking more cost-effective and geopolitically stable options for outsourcing their metal processing needs.
Vietnam’s metal processing services, sheet metal processing outsourcing, and precision metal processing industries have witnessed exponential growth over the past decade. The country’s rapid industrialization, government incentives, and access to key trade agreements make it an attractive destination for businesses looking to mitigate risks while maintaining quality and cost efficiency.
Key Data Points Driving Vietnam’s Metal Forming Growth:
- Manufacturing sector growth: Vietnam’s metal processing industry contributed over 25% of the country’s GDP in 2024, up from 20% in 2015.
- Export volume: Vietnam exported $53 billion worth of machinery and metal products in 2024, an increase of 18% year-over-year.
- Labor cost advantage: Vietnam’s average hourly wage for skilled metal processing workers is around $3.44 per hour, compared to China’s $6.50 per hour and the US’s $27 per hour.
- Trade agreements: Vietnam benefits from the EU-Vietnam Free Trade Agreement (EVFTA), CPTPP, and RCEP, which significantly reduce tariffs on exported metal goods.
Cost Benefits: How Vietnam Competes with China & India in Metal Forming
Lower Labor Costs, Higher Value in Metal Forming
One of the primary reasons US and European companies are shifting metal processing supply chain operations to Vietnam is cost efficiency. Labor costs in China have been steadily rising, making Vietnam a more attractive and affordable alternative.
Cost Comparison for Skilled Metal Forming Workers (2025 Projections):
| Country | Average Hourly Wage (USD) |
|---|---|
| USA | $27.00 |
| Germany | $25.50 |
| China | $6.50 |
| India | $3.90 |
| Vietnam | $3.44 |
While labor costs are lower, Vietnam is not just competing on price—it is also rapidly advancing in technology, automation, and precision manufacturing to meet global standards.
Trade Agreements and Tariff-Free Exports in Metal Forming Industry
Vietnam’s participation in major trade agreements like EVFTA, CPTPP, and RCEP provides significant tariff reductions, allowing duty-free exports of metal processing products and other metal components to European and some US markets.
- EVFTA Impact: Eliminates 99% of tariffs on Vietnam-made industrial products exported to the EU.
- CPTPP Benefits: Provides a competitive advantage over China and India in countries like Canada, Australia, and Japan.
- US-Vietnam Trade Relations: While Vietnam is not part of a free trade agreement with the US, the absence of the same high tariffs applied to Chinese goods makes it an increasingly attractive sourcing option. Additionally, the Vietnamese government has been proactively engaging with US representatives to strengthen trade relations. In early 2025, Vietnam expressed readiness to increase imports of US agricultural products and energy resources, aiming to balance trade and reduce the risk of potential tariffs on Vietnamese exports. Vietnam has also initiated discussions on a possible trade cooperation framework with the US to ensure smoother industrial exports and protect against potential future trade restrictions.
Lower Operational & Infrastructure Costs in Metal Forming Production
Vietnam offers more than just affordable labor—land lease costs, electricity rates, and factory construction expenses are also significantly lower than in China and India.
| Cost Factor | China | Vietnam |
| Industrial Land (per sq.m) | $180-$250 | $80-$120 |
| Electricity (per kWh) | $0.12 | $0.08 |
| Factory Setup Costs | 20-30% higher | Lower by 25% |
Quality & Compliance: Can Vietnamese Metal Forming Manufacturers Meet International Standards?
Vietnamese manufacturers are continuously improving their quality control measures, compliance with international regulations, and technological capabilities to meet the high expectations of US and European businesses.
Certifications and Standards in Metal Forming Industry
- Many leading metal processing manufacturers in Vietnam have obtained ISO 9001, ISO 14001, and AS9100 certifications, ensuring compliance with international quality standards.
- Factories specializing in precision metal processing and sheet metal processing outsourcing implement strict quality control (QC) protocols, including third-party inspections and adherence to ASTM and EN standards.
Technology and Infrastructure Upgrades in Vietnam’s Metal Forming Sector
- Vietnam’s metal processing industry is rapidly adopting CNC machining, hydroforming, and automated roll forming to improve accuracy and efficiency.
- Investments in AI-driven defect detection and smart factory technologies are helping manufacturers maintain consistent quality while reducing waste.
Trump’s New Tariff Policies: How They Impact Metal Forming Outsourcing to Vietnam
The Impact of Tariffs on China & How Vietnam Benefits
With Donald Trump’s re-election in 2025, his administration has reintroduced high tariffs on Chinese industrial goods, similar to those imposed during his first term.
Projected Tariffs on Chinese Metal Products (2025)
| Product Type | Previous Tariff (2020) | Expected Tariff (2025) |
| Steel Imports | 25% | 30-35% |
| Aluminum Imports | 10% | 25% |
| Industrial Components | 15% | 20-25% |
This policy shift is driving US companies to seek alternative suppliers in countries like Vietnam. Vietnam stands to benefit from increased demand for its metal processing services, as it is not subject to the same high tariffs imposed on Chinese goods. Furthermore, the Vietnamese government is negotiating favorable trade conditions with the US, ensuring minimal disruption in outsourcing operations.
Success Stories: US and EU Companies Partnering with Vietnamese Metal Forming Suppliers
Case Study 1: Roof Jack
The customer is an American company, specializing in providing products in the construction industry, some components are imported from China, their goal is to expand into the Vietnamese market and need to find some other suppliers.
ROOF JACK has a detail appearance of a funnel shape. This is a product that does not require high dimensional tolerances, but must have the right technology to meet demanded productivity and achieve competitive price
Case Study 2: Metal Box from Vietnam
The customer is a UK and US company specializes in providing products in the field of military ammunition packaging, has bought many different types of ammunition boxes in Vietnam and China, their goal is to expand into the Vietnamese market and develop more different types of metal boxes.
Metal Box-PA171 is a long tube-shaped part, made up of many component, assembled and welded together. This is a product with typical stamping technology and welding technology with electrostatic coating, which requires the factory to have closed technology from start to finish to create products at competitive prices compare with the Chinese manufacturers.
Case Study 3: Green Urban life
Green Urban Life is an interdisciplinary team of the sections of architecture, art, botany and technology, which plan and realize projects with green on and in buildings.
FAQs About Metal Processing Outsourcing to Vietnam
Why is Vietnam a top choice for metal forming outsourcing?
What types of metal forming services are available in Vietnam?
How do Trump’s tariffs impact metal processing outsourcing?
With higher tariffs on Chinese metal imports, many US companies are moving their metal forming needs to Vietnam to avoid trade restrictions and reduce costs.
How can companies ensure quality when outsourcing to Vietnam?
What industries benefit most from Vietnam’s metal forming capabilities?
Industries such as automotive, aerospace, industrial machinery, and construction gain from cost-effective, high-quality, and tariff-free metal f0rming solutions.
