Made in Central Vietnam : Why Global OEMs Are Shifting Production Here

In the global race to find cost-effective, reliable, and scalable manufacturing hubs, Vietnam continues to stand out. But recently, it’s not just the southern powerhouse of Ho Chi Minh City or the industrial zones around Hanoi that are drawing attention. A growing number of international buyers and OEM brands are now shifting their focus to Central Vietnam—a region once overlooked but now emerging as a strategic destination for diversified manufacturing.

From SMT electronics in Da Nang to garment factories near Quang Nam, ceramic tiles and furniture in Hue, and even automotive component hubs at THACO Industries, Central Vietnam is showcasing what “Made in Vietnam” really means today: flexible, high-quality, and ready for export.

A Rising Manufacturing Hub in the Heart of Vietnam

Once known primarily for its stunning beaches and cultural heritage, Central Vietnam is now quietly emerging as a new industrial hotspot. In 2024 alone, Quang Nam Province approved 10 new foreign direct investment (FDI) projects with total registered capital reaching USD 134.85 million. Meanwhile, from the beginning of 2025 to July 25, Da Nang City attracted USD 307.3 million in investment, marking a 4.6% increase compared to the same period in 2024.

Although Central Vietnam has not attracted as much FDI as the North and South, its steady growth signals a shift that global investors should not overlook. Combined with the strategic advantages we’ll explore in this article, Central Vietnam is set to become an increasingly attractive destination for global investors.

Vietnam Factory Tours: Inside the New Wave of OEM Manufacturing

This series of Vietnam factory tours explores four key sectors including furniture, electronics, garments and automotive, highlighting the scale, technology and export readiness behind “Made in Vietnam” production. To see real operations inside these factories, watch the full Vietnam Factory Tour video here.

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Furniture and Ceramic Tile Production in Hue

In Hue, local factories are blending traditional craftsmanship with modern OEM capabilities. Several facilities specialize in solid wood furniture and decorative ceramic tiles for export to markets such as Australia and Europe. The production process includes wood drying rooms, hand-finishing zones, and strict quality control checkpoints — showing that “Made in Vietnam” products can offer more than low cost, with strong customization and quality capabilities.

MoveToAsia CEO, Mr Guillaume Rondan is visiting a furniture factory in Central Vietnam

High-Tech Electronics and EMS in Da Nang

Da Nang is emerging as a hub for electronics manufacturing and SMT (Surface Mount Technology) assembly. Many factories here are equipped with full SMT lines, AOI inspection, reflow soldering, and cleanroom assembly areas. End-to-end turnkey capabilities, from PCB assembly to final packaging, are becoming common for exports to the EU and Japan. Backed by skilled engineers and ISO certifications, EMS facilities in Central Vietnam are starting to approach the capabilities of EMS facilities in Taiwan and Thailand, especially in terms of cost-efficiency and skilled workforce.

Foreign MoveToAsia consultant is auditing a EMS company in Vietnam

Garment Manufacturing in Quang Nam

In Quang Nam, mid-sized garment factories are focused on activewear and technical apparel. These facilities handle ODM and OEM orders, with in-house sampling, CAD-based pattern making, and clear production workflows. While Southern Vietnam remains the country’s apparel stronghold, the Central region is gaining momentum thanks to available capacity and smoother transportation logistics. It’s a suitable choice for brands seeking flexible lead times and a more sustainable supply chain.

Guillaume Rondan, CEO of MoveToAsia, a sourcing agency is visiting a garment manufacturer in Vietnam

Automotive Components at THACO Industries

Located in Chu Lai, this manufacturing giant produces auto parts, heavy equipment, and precision mechanical components for global OEM clients. The site features robotic welding, CNC machining, and a large-scale export logistics park.
THACO has established partnerships with companies from Korea, Japan, and Europe, a sign that Central Vietnam is entering the high-value global supply chain.

Vietnam automotive manufacturing factory tour

MoveToAsia sourcing consultant visiting THACO Industries

Why are global buyers shifting to Central Vietnam for manufacturing?

Central Vietnam is fast becoming a key part of the “Vietnam manufacturing” landscape, offering global buyers a practical and affordable alternative to traditional hubs.

Diversified Production Base: From electronics and textiles to furniture and machinery, the region supports a wide range of manufacturing types, ideal for buyers with multi-category sourcing needs.

Better Lead Times: Less congestion compared to major hubs like Binh Duong or Dong Nai means faster sampling, fewer delays, and smoother logistics.

Cost-Effective Workforce: Labor in Central Vietnam remains more affordable than in the north or south, especially in light of rising wages in Ho Chi Minh City.

Proximity to Ports and Airports: With direct links to Da Nang International Airport and seaports along the coast, Central Vietnam is well-positioned for exports.

While the region holds great promise, challenges such as seasonal weather disruptions and the need for continued upskilling remain important considerations for investors.

MoveToAsia team conducting a pre-audit visit at an EMS supplier in Vietnam.

The Strategic Value of Vietnam Factory Tours for Global Sourcing

Factory tours in Vietnam play a critical role in helping international buyers make informed sourcing decisions. Each facility has its own strengths, whether in ceramics, electronics, garments, or industrial components. Visiting factories in person allows buyers to assess actual production capabilities, evaluate quality control processes, and have meaningful conversations with factories. This direct interaction is essential to ask the right questions and understand whether a supplier is truly capable of meeting specific standards and volume requirements.

Conclusion

Central Vietnam is quickly emerging as a strategic hub for global sourcing across multiple industries. From furniture in Hue to electronics and garments in Da Nang, and advanced automotive components at THACO Industries in Quang Nam, the region demonstrates diverse and scalable manufacturing strengths.

What sets Central Vietnam apart is the combination of lower operational costs, improving infrastructure, and access to skilled yet affordable labor. For international buyers looking beyond China, this region offers the right balance of flexibility, quality, and cost-efficiency, positioning it as a smart and sustainable sourcing destination.

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Source: Vietnam Insider