Global supply chains have been tested repeatedly in recent years. Trade tensions, pandemics and shifting consumer demand have forced companies to rethink where and how they make critical components. For B2B customers deploying industrial‑grade IoT tracking hardware, the ability to deliver devices on time and at scale isn’t just about having a great design – it’s about building resilience into the manufacturing footprint.
Labour cost and workforce dynamics
China has long dominated high‑tech manufacturing thanks to its massive infrastructure and deep expertise. That strength comes at a cost: average hourly labour in China was around US$6.5 in 2020, reflecting a mature and skilled workforce. Vietnam’s labour costs were roughly half of that level at about US$3 per hour, making it an attractive location for labour‑intensive assembly work. What makes Vietnam stand out is not just affordability but also its investment in vocational training programmes that are producing a sizeable, well‑educated workforce ready for industrial roles.
Manufacturing capabilities and quality
China remains the world’s largest manufacturing economy. It accounted for over a quarter of global high‑tech exports in 2023, producing everything from consumer electronics to advanced machinery. Vietnam, while historically known for textiles and footwear, has been climbing the value chain: major firms like Samsung, LG Electronics, Nokia and Intel have invested billions of dollars to build factories in the country. At the same time, Vietnamese manufacturers are aligning their production standards with global norms – around 60 per cent of the national TCVN standards are now harmonised with international benchmarks. Both China and Vietnam have improved quality control systems significantly in recent years, but due diligence and supplier vetting remain essential.
Logistics and shipping realities
China’s logistics sector is immense. Thousands of shipping companies and forwarders compete to move millions of tonnes of cargo every year, keeping rates surprisingly low. Vietnam’s shipping industry is smaller but increasingly competitive; ocean freight from Vietnam to the United States generally takes 24–41 days, comparable to China. However, the surge of companies adopting a “China Plus One” strategy has strained some Vietnamese ports. During 2024, apparel shipments from Vietnam to the US experienced average transit times rising from about 18 days to nearly 39 days as ports operated well beyond their designed capacity. Dockworker shortages and stricter customs inspections contributed to delays. These challenges underscore why relying on a single country is risky – bottlenecks in one location can ripple through the entire supply chain.
Why dual manufacturing matters
Eelink’s approach of operating factories in both China and Vietnam isn’t just about spreading risk – it’s a strategic advantage for customers who depend on timely deliveries of custom IoT tracking devices. By splitting production between the two countries, we can:
- Optimise costs: labour‑intensive processes can be performed in Vietnam to take advantage of lower wages, while highly automated, technology‑dense operations remain in China.
- Balance capacity: surges in demand or unexpected shutdowns in one region can be absorbed by shifting work to the other factory.
- Mitigate geo‑political risks: trade disputes, tariffs or sudden regulatory changes in one country have less impact when production is geographically diversified.
- Enhance supply‑chain resilience: dual manufacturing enables flexible shipping outes, allowing us to pivot between ports and carriers if congestion or strikes appear.
Engineering discipline meets supply‑chain strategy
- Dual manufacturing only works when combined with disciplined engineering. Eelink follows rigorous EVT/DVT/PVT stage‑gates, designs hardware for testability and reliability, and builds traceability into every device that leaves the factory. The result is a robust pipeline where prototypes are matured into production‑ready products and then manufactured consistently across two facilities
To see how these disciplined processes translate into real-world solutions, read our post on designing IoT trackers for equipment rental.
Visualising the difference
The chart below illustrates why it makes sense to blend capacity across China and Vietnam. Labour costs differ significantly, yet shipping times remain similar. By leveraging both locations, companies can achieve a balance of cost efficiency and timely delivery that neither country alone can guarantee.
For more on how IoT innovations like smart factories and sustainable cities are transforming manufacturing and logistics, read our article on IoT trends shaping 2025.
Conclusion
Resilient supply chains aren’t built overnight. They require deliberate decisions about where to invest, how to manage risk and when to diversify. For B2B customers deploying industrial IoT tracking hardware, a dual manufacturing strategy offers a pragmatic path forward. It leverages the scale and technical maturity of China while harnessing the cost advantages and agility of
Vietnam. The result is a supply chain designed not just to survive the next disruption but to deliver reliably for years to come.