In recent years, achieving both cost reduction and high quality has become an increasingly important issue in the manufacturing industry. And what is attracting attention as a solution is aluminum die casting in Vietnam.
Vietnam has abundant labor and a low-cost production environment, and in recent years, its technological capabilities have also improved, making it possible to manufacture high-quality aluminum die-cast products.
This article will explain in detail the advantages and disadvantages of aluminum die casting in Vietnam, success stories, and the strengths of Daiwa Keikinzoku.
We hope that you will deepen your understanding of the potential of aluminum die casting in Vietnam and the high-quality aluminum die-cast products provided by Daiwa Keikinzoku, and use it to grow your business.
Overview of Vietnam’s Aluminum Die Casting Industry
Vietnam’s aluminum die casting industry has grown rapidly in recent years. According to a report by Mordor Intelligence, Vietnam’s aluminum die casting market is projected to grow at a CAGR of 13.18% during the period from 2021 to 2026 [1].
Current State of Vietnam’s Aluminum Die Casting Industry
In Vietnam, casting is a growing industry, with new factories being built one after another [2]. Major multinational companies such as Toyota, Hyundai, and Samsung are investing in Vietnam’s aluminum die casting industry to take advantage of Vietnam’s low-cost labor and favorable business environment [1].
The level of equipment and quality control is increasing year by year, and many companies have achieved overseas exports [2]. With the development of the home appliance and motorcycle industries, the number of companies engaged in die casting is increasing, and die-cast products such as motorcycles, home appliances, and electronic products are manufactured using materials such as aluminum (ADC6, ADC12, etc.), zinc (ZDC2, ZDC3, etc.), and magnesium [2]. There are also companies that can manufacture automobile parts, but they are concentrated in Japanese and Taiwanese companies [2].
The Vietnamese government is actively promoting foreign investment in the manufacturing sector by providing benefits such as tax incentives and free land allocation [1]. In addition, the Vietnamese Ministry of Industry and Trade is working with Samsung to develop a human resource development project for the mold industry [2].
Advantages of Aluminum Die Casting in Vietnam
The advantages of aluminum die casting in Vietnam include the following points.
- Low-Cost Labor: Vietnam has relatively low labor costs, which can reduce manufacturing costs [3][4][5].
- Abundant Raw Materials: Vietnam has the third largest reserves of bauxite (the raw material for aluminum) in the world, making it easy to procure raw materials [4].
- Geographical Advantage as an Export Base: Vietnam is located in the center of Southeast Asia, making it easy to export to European, American, and Asian markets [4][6].
- Integrated Production System: Many factories can handle everything from molding to surface treatment and secondary processing, enabling efficient production [4][6].
- Government Support: The Vietnamese government actively supports investment in the manufacturing industry, providing a favorable environment for foreign-affiliated companies [7][8].
Disadvantages of Aluminum Die Casting in Vietnam
On the other hand, there are also disadvantages to aluminum die casting in Vietnam.
- Technical Skill Issues: In some factories, the technical level may be inferior to that of Japan and Europe and the United States, and care must be taken when manufacturing high-precision products [9][5].
- Variations in Quality Control: There are differences in quality control systems depending on the factory, and it is important to choose a reliable partner [10][11].
- Infrastructure Constraints: In some areas, power supply and logistics infrastructure may be unstable [4][12].
It is important to consider aluminum die casting in Vietnam after understanding these advantages and disadvantages.
[1] https://sf-foundry.com/comprehensive-analysis-of-the-aluminum-casting-market-in-vietnam/
[2] https://emidas-magazine.com/ja/news/20112023-1285
[3] https://www.conhira.com/caselist/5822
[4] http://www.sohwa.jp/die-casting/
[5] https://www.tech-journey.jp/column/%E4%B8%AD%E5%9B%BD%E3%81%A8%E3%83%99%E3%83%88%E3%83%8A%E3%83%A0%E3%81%AE%E8%A3%BD%E9%80%A0%E6%A5%AD%E3%81%AE%E9%81%95%E3%81%84/
[6] https://estate.nikkan.co.jp/news/2024/08/wrta4erkyoar6apb
[7] https://www.jbic.go.jp/ja/information/press/press-2024/press_00132.html
[8] https://emidas-magazine.com/ja/news/20112023-1285
[9] https://emidas-magazine.com/ja/news/market-trend-18-19-vol11-86
[10] https://marusank.jp/qa/%E3%83%99%E3%83%88%E3%83%8A%E3%83%A0%E5%B7%A5%E5%A0%B4%E3%81%AE%E7%B4%A0%E6%9D%90%E3%82%A2%E3%83%AB%E3%83%9F%E9%8B%B3%E9%80%A0%E5%93%81%E3%81%AE%E5%93%81%E8%B3%AA%E4%BF%9D%E8%A8%BC%E3%81%AF%E3%81%A9/
[11] https://mktp.vn/ja/technology/
[12] https://ja.ghonoraluminum.com/vietnam-factory
Successful Cases of Aluminum Die Casting in Vietnam
In Vietnam’s aluminum die casting industry, many companies have achieved success by balancing cost reduction and high quality. Here, we will introduce successful cases that clearly state specific company names, product names, cost reduction amounts, etc.
Case 1: Company A (Construction of a New Factory in the Suburbs of Ho Chi Minh City and Integrated Production System)
Company A established a new factory in Long An Province, near Ho Chi Minh City, Vietnam, in August 2024 [1]. This new factory has built an integrated production system from aluminum die casting molding to deburring, machining, and surface treatment, efficiently manufacturing high-quality aluminum die-cast parts.
By establishing the new factory, Company A has succeeded in significantly shortening the lead time compared to conventional outsourced processing and reducing costs by approximately 20%. In addition, by thoroughly implementing quality control, they have gained customer trust and increased order volume.
Case 2: Company S (Secondary Processing and Surface Treatment in the Ho Chi Minh Area)
Company S has been developing an aluminum die casting business in the Ho Chi Minh area of Vietnam since 2007 [2]. Company S meets the diverse needs of customers by consistently handling not only die casting molding but also secondary processing and surface treatment.
Company S leverages its extensive experience and technological capabilities in Vietnam to establish high-precision mold design and efficient manufacturing processes, providing high-quality aluminum die-cast products at competitive prices.
Case 3: Company F (Manufacturing and Sales of Electrical Parts and Aluminum Die-Cast Products)
Company F manufactures and sells electrical parts and aluminum die-cast products in Vietnam [3]. Company F is increasing its price competitiveness by utilizing Vietnam’s low-cost labor and expanding exports to European, American, and Asian markets.
Company F has gained customer trust and secured stable orders by strengthening its quality control system. In addition, they are reducing procurement costs and strengthening competitiveness by actively engaging in local procurement.
Case 4: Company T (Aluminum and Magnesium Die-Cast Products)
Company T started operations in Vietnam in 1997 and has grown to have three die casting factories [4]. They produce aluminum and magnesium die-cast products and have also entered the automotive parts market [4].
Company T has earned a high reputation from customers by providing high-quality die-cast products at competitive prices, leveraging its many years of experience and achievements in Vietnam.
Case 5: Use of Alumina Ceramic Foam Filters
In a case at an aluminum factory in Vietnam, it was possible to efficiently remove impurities, improve the quality of the final product, and reduce production costs by using alumina ceramic foam filters [5].
This case shows that Vietnam’s aluminum die casting industry is undergoing further evolution by introducing the latest technologies.
These successful cases show that aluminum die casting in Vietnam can balance cost reduction and high quality.
[1] https://estate.nikkan.co.jp/news/2024/08/wrta4erkyoar6apb
[2] http://www.sohwa.jp/die-casting/
[3] https://www.jbic.go.jp/ja/information/press/press-2024/press_00132.html
[4] https://emidas-magazine.com/ja/news/21112023-1293/
[5] https://sf-foundry.com/comprehensive-analysis-of-the-aluminum-casting-market-in-vietnam/
Aluminum Die Casting by Daiwa Keikinzoku in Vietnam
Daiwa Keikinzoku has unique strengths in aluminum die casting in Vietnam, balancing cost reduction and high quality. By maximizing our long-cultivated technological capabilities and know-how, and the business environment in Vietnam, we provide optimal solutions to our customers.
Vietnam Production to Achieve Cost Reduction
Daiwa Keikinzoku has a factory in the Nhon Trach Industrial Park, located in Dong Nai Province, Vietnam. Because labor costs and manufacturing costs are relatively low in Vietnam, we can provide high-quality aluminum die-cast products at competitive prices.
In addition, the factory is well-equipped, and by introducing state-of-the-art die casting machines and peripheral equipment, we have achieved improved production efficiency and cost reduction.
Ensuring High Quality Through Japanese-Style Management
Daiwa Keikinzoku thoroughly implements Japanese-style management at its Vietnam factory, and stably supplies high-quality aluminum die-cast products.
The quality control system has acquired ISO9001 certification, and we have established strict quality standards. Customers can use our products with confidence due to careful work by skilled engineers and thorough quality control using state-of-the-art inspection equipment.
Efficiency Through Local Procurement in Vietnam
Daiwa Keikinzoku actively engages in local procurement in Vietnam. This reduces transportation costs, lead times, and foreign exchange fluctuation risks.
In addition, by building strong cooperative relationships with local suppliers, we balance stable material procurement and quality assurance.
Daiwa Keikinzoku supports the success of our customers’ businesses by leveraging these strengths.
Summary
Aluminum die casting in Vietnam has advantages such as low-cost labor and abundant raw materials, but issues remain in technical capabilities and quality control. However, with the support of the Vietnamese government and the efforts of companies, the manufacture of high-quality aluminum die-cast products is becoming possible.
Vietnam’s aluminum die casting industry is expected to grow further in the future. Daiwa Keikinzoku provides aluminum die-cast products that best suit customer needs by leveraging its strengths: cost reduction through production in Vietnam, high quality through Japanese-style management, and local procurement.
Please feel free to contact Daiwa Keikinzoku if you are considering introducing aluminum die casting.
