As global electronics brands increasingly seek to diversify their manufacturing bases, Vietnam has emerged as a compelling destination for Electronics Manufacturing Services (EMS). While China remains dominant, recent geopolitical shifts, rising labor costs, and supply chain vulnerabilities have accelerated the “China Plus One” strategy. Among the primary sectors experiencing this shift are Surface-Mount Technology (SMT) and full EMS, including Box-Build and Battery Management System (BMS) integration.
The Rise of Vietnam in Global EMS
Vietnam’s electronics manufacturing exports have grown rapidly over the past decade, driven by increasing foreign direct investment (FDI) from both Asian and Western companies. In particular, central regions like Da Nang and Quang Nam are becoming hubs for high-precision electronics manufacturing. This rise is not accidental; the Vietnamese government has strategically promoted high-tech sectors, invested in industrial park infrastructure, and partnered with universities to develop a skilled labor pool.
Notable global brands like Samsung, Foxconn, and Intel have expanded operations in Vietnam, setting a precedent for Tier-2 and Tier-3 EMS providers to follow. Local firms have also matured rapidly, offering comprehensive services ranging from PCB assembly (PCBA) to final product box-builds.
In this video, we offer a behind-the-scenes look at the production line of a leading EMS factory in Vietnam, showcasing SMT processes, box-build assembly, and BMS integration in action.
SMT Infrastructure and Capability
Surface-Mount Technology (SMT) is the backbone of modern electronic assembly, allowing for high-density circuit design and efficient automated production. Vietnamese EMS factories have made significant investments in automated SMT lines equipped with advanced pick-and-place machines. These systems ensure high throughput and precision during component placement on printed circuit boards.
To ensure optimal solder joint quality, factories utilize reflow ovens that control temperature profiles with high accuracy. Quality assurance is further reinforced through the use of flying probe testers and In-Circuit Testers (ICT), which validate the electrical functionality of assembled boards. Defect detection is handled by Automated Optical Inspection (AOI) systems, which scan for component misplacements, soldering errors, and other anomalies.
Many Vietnamese facilities maintain international standards, being certified under ISO 9001 and ISO 14001. An increasing number are also achieving ISO/TS 16949 certification, particularly to support automotive electronics production. While Vietnam still trails China in terms of SMT line density and the depth of its local component ecosystem, the quality of execution for small to mid-volume batches is steadily improving. Factories are also beginning to adopt Manufacturing Execution Systems (MES) and Supervisory Control and Data Acquisition (SCADA) technologies to enhance traceability and process control.
>> Related article: Inside a Vietnam Mattress Factory: Enhanced Quality Through Technology
Comparing Labor and Cost Structures
One of Vietnam’s strongest comparative advantages is labor cost. The average monthly salary for an SMT line operator in Vietnam ranges between $250 to $800, which is significantly lower than the $700 to $ 2220 range found in China. This cost efficiency makes Vietnam particularly attractive for EMS providers producing medium- to low-margin electronics, including IoT devices and consumer accessories.
In addition to favorable wages, Vietnam has developed a capable workforce through vocational training programs and higher education institutions. These programs emphasize electronics design, robotics, and quality management, equipping workers with the skills needed in high-tech manufacturing.
Nonetheless, China retains an edge in labor productivity per unit, benefiting from its more mature ecosystem, extensive experience, and tighter integration among component suppliers, contract manufacturers, and logistics providers.
Box Build and BMS Integration: Vietnam’s Added Value
Vietnamese EMS factories are moving beyond basic PCB assembly to offer comprehensive solutions, including Box Build and Battery Management Systems (BMS) manufacturing. These capabilities encompass the system-level integration of enclosures, connectors, and wire harnesses, offering a more complete product build under one roof.
Furthermore, EMS providers in Vietnam have expanded to include services such as firmware flashing and functional testing, ensuring that final assemblies are both software-ready and functionally validated. Many facilities are now producing power and battery modules tailored for electric vehicle (EV) and e-bike applications, signaling their readiness to serve advanced sectors.
This vertical integration reduces complexity in the supply chain for global brands. By housing PCBA, box build, and BMS production within the same facility, companies benefit from shorter lead times, streamlined operations, and centralized quality control.
>> Related article: Vietnam’s FDI Landscape: Its Transformation from Labor-Intensive to High-Tech Growth
Strategic and Operational Considerations
Manufacturing in Vietnam presents several strategic advantages. First, labor costs remain competitive, making it cost-effective for many categories of electronic goods. Second, Vietnam’s participation in trade agreements such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) enhances its attractiveness to exporters. The country’s political stability and openness to foreign direct investment further contribute to its favorable business environment. Lastly, Vietnam’s geographical position offers strategic access to key ASEAN markets.
However, there are important challenges to consider. The local availability of raw materials and electronic components is limited, often necessitating imports from countries like China or South Korea. This reliance can extend lead times and increase supply chain complexity. Additionally, Vietnam faces infrastructure bottlenecks, particularly in logistics and transportation outside of major urban centers. Finally, its EMS ecosystem is smaller and less developed than that of China’s Pearl River Delta or Yangtze River Delta regions.
Final Thought: The Future Outlook
Vietnam’s rise as an EMS and SMT manufacturing hub signals a broader shift in global electronics production strategy. No longer seen as just a low-cost alternative, Vietnam is evolving into a strategic base for export-focused, mid- to high-value electronic products. Its growing capabilities in SMT automation, box-build assembly, and BMS integration—combined with competitive labor costs and government support—make it increasingly attractive for OEMs adopting the China Plus One strategy.
However, challenges remain. Vietnam’s EMS ecosystem is still developing in terms of local component availability, supply chain depth, and logistics infrastructure. Yet, the rapid investments in industrial parks, the strengthening of vocational training programs, and the adoption of digital manufacturing technologies (such as MES and SCADA) suggest that Vietnam is preparing to close the gap.
For global sourcing managers, engineering leads, and strategy consultants, Vietnam offers not only a cost-effective production base but also a long-term opportunity to build resilience and flexibility into the electronics supply chain. As the demand for diversified and regionally balanced manufacturing grows, Vietnam is set to become a key player in the global EMS landscape.
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Source: Vietnam Insider