Vietnam Trends
Contract Manufacturing Hub in Southern Vietnam: The Charm of Ho Chi Minh City and the Strengths of WSE - Part 2
This time, we will introduce the appeal of contract manufacturing in southern Vietnam and the strengths of WSE.
3. Factory Management Strengths and the Appeal of WSE Contract Manufacturing
1) Cost Competitiveness
Labor costs in Vietnam are lower than in Japan and China, allowing for significant reductions in manufacturing costs.
Converted to US dollars, the minimum wage (monthly) in Vietnam is US$196 and in Japan is US$1,254, less than one-sixth of Japan’s. (Applicable rates as of July 10th. Monthly wages in Japan are calculated on an hourly basis.)
* (Comparing 2020 and 2025) Minimum wage increase rate: Approximately 12%, electricity and water rates increase rate: Approximately 10% (approximately 4% increase from the previous year)
2) Balancing Quality and Productivity
Since our founding, we have built a management system that complies with Japanese quality standards, with management by Japanese executives and a management system consisting of excellent local staff who have received Japanese-level education and training.
Furthermore, our track record of continuous improvement activities in pursuit of productivity enables us to consistently supply the high-quality products our customers demand.
3) Flexible Response
WSE has its own factory in Ho Chi Minh City and specializes in contract manufacturing. We can quickly and flexibly respond to a variety of needs, from small lots to mass production.
4) Direct Access to Growth Markets
As a manufacturing base with an eye not only on the growing market in Vietnam but also on expansion throughout the ASEAN region, we provide strong support for our customers’ business expansion.
4. Summary
Ho Chi Minh City combines a high economic growth rate of over 7.5%, a young and hardworking workforce, and a well-developed logistics infrastructure, making it an extremely attractive environment for a manufacturing base.
Making the most of these strengths, our company, with its own factory, provides high-quality, cost-competitive contract manufacturing services. We hope you will consider us as your partner for your manufacturing planning in Vietnam.
Please feel free to contact us with any questions or specific inquiries.