Vietnam’s rise as a manufacturing base reflects more than a favourable trade policy. Electricity, labour and logistics costs and capabilities are increasingly important points of differentiation against its regional competitors.

This insight examines Vietnam’s position across these key manufacturing enablers and what they mean for manufacturers assessing or expanding operations in the market.

Electricity cost advantage

According to Global Petrol Prices, business electricity rates in Vietnam are 51.27% of the world average price and 74.57% of the average in Asia.

The electricity price for businesses is VND 2,088.90/kWh, or USD 0.079. These retail prices were collected in September 2025 and include the cost of power, distribution, transmission and all taxes and fees.

Source: Global Petrol Prices

Electricity costs remain a notable competitive advantage for Vietnam’s manufacturing sector. At approximately USD 0.079/kWh for business users, Vietnam’s industrial electricity tariff is among the lowest in Asia and well below those of several key manufacturing competitors, including Thailand (USD 0.123), Malaysia (USD 0.139), China (USD 0.117), Singapore (USD 0.212) and Mexico (USD 0.235).

Labour cost position

Wage costs for manufacturing roles vary significantly across Vietnam’s regional and global competitors, from entry-level positions to skilled technical roles.

Source: DEWIN internal payroll data & supplier audits, January 2026. Rates for Ho Chi Minh City / Binh Duong industrial zones.

Vietnam’s manufacturing wages remain below those in China and Mexico across every worker category, from general manufacturing roles to skilled CNC operators and QC inspectors. Its social insurance contribution rate, at around 32% of wages, is also below China’s 40%. India undercuts Vietnam on both wages and social insurance costs throughout. This positions Vietnam as a mid-tier labour market: costlier than India across the board, but consistently cheaper than China and Mexico even at the skilled end of the workforce, where cost gaps often narrow.

Logistics connectivity gains

As of June 2025, Vietnam ranked among the top 6–10 most connected economies on the Liner Shipping Connectivity Index (LSCI), having overtaken longstanding entrants such as Japan, Spain and the United Kingdom. Vietnam’s LSCI score jumped by 12 per cent over the past year, reflecting more direct calls and deployed capacity.

Source: UNCTAD, based on data provided by MDS Transmodal, June 2025

Despite increasing pressure on global ports, Vietnam has emerged as one of the world’s most efficient container-handling locations for large vessel operations. According to the 2025 Review of Maritime Transport, Vietnam recorded the fastest container handling times in every vessel call category involving more than 2,000 container moves, outperforming major maritime economies such as China, Malaysia, Singapore and Japan. This reflects continued investment in modern deep-water ports, terminal automation and operational efficiency, reinforcing Vietnam’s competitiveness as a regional manufacturing and export hub.

Vietnam SuperPort and high-tech trade

As speed becomes a defining factor in electronics supply chains, logistics hubs are reinventing themselves to keep goods moving seamlessly across borders. Many industry pioneers now rely on real-time tracking systems, AI-enabled customs processes and dedicated transport networks to minimise disruptions and streamline international trade.

One such development is Vietnam SuperPort™, an 83-hectare smart multimodal hub that connects 20 industrial parks in Northern Vietnam with major maritime and air gateways, including Hai Phong and Nội Bài. The hub’s strategic positioning also strengthens trade links with Yunnan and Kunming, creating an efficient corridor for high-value electronics to reach Hong Kong and the Greater Bay Area through rail and sea transportation.

What this means for manufacturers

Vietnam offers manufacturers a combination of competitive costs and improving infrastructure. Electricity tariffs and labour costs remain relatively competitive, while investment in port infrastructure and logistics corridors is strengthening connectivity and supporting more efficient delivery. Together, these factors provide a competitive and increasingly reliable operating environment for manufacturers assessing Vietnam as a production and export base.

Download the full industry report Vietnams Next Manufacturing Frontier (2026) | Acclime Vietnam.

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