- Most kitchen cabinet manufacturers in Vietnam are moved from China, with Chinese owner and management team. They have similar company culture, and do business in similar way.
- They manufacture RTA kitchen cabinets with similar wood working technology and process. Actually most cabinet processing machines of a Vietnam cabinet factory are made in China.
- They use similar material. For example, solid wood cabinet door use birch, cabinet box use plywood. And they also use similar hardware brand, like DTC, SACA etc.
- Similar price term and payment term. Normally FOB HCM Vietnam, and payment in 30% deposit at order and 70% balance paid when containers are shipped.
- Production ability. With many years experience and well trained workers, The kitchen cabinet factories in China mostly have full ablitly for every processing steps of kitchen cabinet manufacturing. While in Vietnam, the cabinet factoreis are built in a rush. In a short term, some of the key ability can not been established, especially the finishing of stain color. The ability rely on experienced and skillful paint technician and a whole finishing system. Every Vietnam kitchen cabinet factory can make carcass. But not everyone make cabinet door, not everyone finish kitchen cabinet door.
- Material. While China and Vietnam cabinet factories may use similar material, there are certain difference that a cabinet importer should pay attention to. Vietnam plywood contains different wood species in the core and looks darker than China plywood.
- Lead time. A Chinese cabinet manufacturer could ship an order in 45 days. But a Vietnam cabinet manufacturer could take longer lead time. One reason is the lower working efficient in Vietnam but the most important reason is most Vietnam factories lack full ability and still rely on China to make cabinet doors.
- Tariff. American cabinet company importing cabinets from China will receive no less than 70% tariff. Importing cabinets from Vietnam is tariff free.
- Price. Price of a Vietnam cabinet factory is 10-20% higher than China. The increase cost comes from higher raw material cost and supply chain. For example, when cabinet door made in China and ship to Vietnam, the logistics cost is count in the price of FOB Vietnam cabinet price.
- Even though Vietnam is seens as best alternative, its infrastructure is not as good as China. For example, Vietnam aim to achieve 2000 KM highway till 2020, while China already has total 140000 KM by end of 2018. The lacking of infrastructure could potentially affect the operation efficiency of Vietnam cabinet factory.
At this difficult time full of uncertainty, there are both opportunity and risks to do business. The key of success is to find the right business partner. Cabinet Sourcing, representing a large cabinet manufacturing network, is the best cabinet supplying partner of American cabinet importers. Working with us means working with reliable cabinet factories in Veitnam, Malaysia, Thailand etc. Cabinet Sourcing is able to provide a turnkey solution that build a steady cabinet supply for customers.