Screw procurement strategy for Japanese companies collaborating with Vietnamese manufacturers: “Optimal solution” to improve local procurement rate and reduce quality risks
In recent years, the expansion of manufacturing bases in Vietnam has been accelerating as a leading destination for the China Plus One strategy. However, “local procurement of parts” constantly emerges as a management issue when collaborating with companies entering the market or local partners. In particular, the procurement of “screws and fastening parts,” which are the smallest units determining product safety and quality, is not merely a means of cost reduction but a strategic element that determines supply chain resilience. Many Japanese companies face variations in the quality management capabilities of local suppliers, a lack of ability to handle small-lot products, and risks of delivery delays. There are countless examples where a shortage or defect of just a single screw leads to a production line stoppage for the entire factory. In this article, while unraveling current data on the manufacturing industry in Vietnam, we will explain optimization strategies for “Quality, Cost, and Delivery (QCD)” that Japanese companies should pursue, from the perspectives of specific procurement methods and partner selection. We hope that the knowledge cultivated by us at Ohta Vietnam on the ground will be of assistance to your procurement strategy. For Japanese companies expanding into Vietnam, improving the local procurement rate is an urgent issue. According to a survey by the Japan External Trade Organization (JETRO), although the local procurement rate of Japanese companies in Vietnam is on an upward trend year by year, it remains at a low level compared to Thailand and China. In particular, in addition to raw materials and electronic parts, the reality is that local suppliers who fully meet the quality standards (such as JIS standards) required by Japanese companies for high-precision “fastening parts” are limited. Vietnam’s supporting industries are in the process of growth, and while technological improvements can be seen in fields such as press processing and resin molding, challenges remain regarding quality stability in fastener (screw) manufacturing that involves “special processes” such as heat treatment and plating. As a result, many companies are forced to choose between depending on imports from Japan or neighboring countries, knowing costs will increase, or conducting local procurement while bearing quality risks. Even with domestic procurement in Vietnam where physical distance is close, delivery delays can occur depending on logistics infrastructure and supplier management capabilities. In particular, building a “local production for local consumption” supply chain, which is less susceptible to recent geopolitical risks and container ...
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April 03rd, 2026
Five keys to successful screw procurement in Vietnam: Optimization of quality, cost, delivery date and DX strategy
Vietnam is now garnering intense focus from the global manufacturing industry. Against a backdrop of stable economic growth, an abundant labor force, and a strategic location, it is transforming from just “the world’s factory” into a crucial production base for high-value-added products. As of July 2025, there are 433 industrial parks operating in the country, and their momentum is undeniable, with occupancy rates exceeding 90% in the southern region. Amid this boom, many Japanese manufacturing companies are expanding into Vietnam and proceeding to restructure their supply chains. However, behind this rapid development, procurement and purchasing departments are facing new challenges. Chief among them is the procurement of “screws (fasteners),” which form the foundation of all products. How can companies clear the trilemma of ensuring a stable supply to prevent production line stoppages, securing quality equivalent to Japanese standards, and optimizing costs—all in a foreign land? This article will provide a detailed explanation of the specific “Five Keys” to achieving successful screw procurement in Vietnam, based on the latest market data and on-the-ground practical knowledge. From the realities of quality control to the latest inventory management methods utilizing DX, here are the hints to accelerate your company’s business in Vietnam. The era of Vietnam being merely a low-cost production base is coming to an end. Government-led industrial upgrading policies and vigorous Foreign Direct Investment (FDI) are qualitatively changing Vietnam’s manufacturing industry. The strength of Vietnam’s economy is also reflected in concrete figures. In 2023, retail and service sales showed steady growth, increasing by 9.6% year-on-year. Major cities like Ho Chi Minh City (9.6% growth) and the capital Hanoi (10.4% growth) are driving this economic expansion. The manufacturing industry supports this growth. For example, the food processing industry alone is expected to grow by 7.4% year-on-year in 2024, with a market size projected to reach $79.3 billion, bustling with approximately 11,000 companies. The recipients of this active industrial activity are the industrial parks spreading across the country. As of 2025, 433 parks are operational. In the southern region, where many Japanese companies are concentrated, a high occupancy rate of over 90% is maintained. The occupancy rate in the north also exceeds 83%, and in some areas like Bac Ninh province, rental prices surged by 10% in 2024, indicating high demand. Investment in Vietnam is no longer solely for the purpose of low labor costs. Looking at items imported from Japan to Vietnam ...
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March 27th, 2026
Vietnam Manufacturing at a Crossroads: Emerging Trends in the Fastener Market Amid Rising Labor Costs and Increasing Quality Demands
Vietnam has established itself as the “world’s factory” and has become an indispensable production base for many Japanese manufacturers. This momentum has not waned in 2024, with the industrial production index showing steady growth and foreign direct investment (FDI) continuing to flow actively, mainly into the manufacturing sector. However, on the other hand, serious challenges are emerging on the ground. These are “soaring labor costs,” symbolized by the average 6% minimum wage hike from July 2024; a “low local procurement rate,” which remains low compared to other ASEAN countries; and “increasingly sophisticated quality demands” accompanying the shift to higher value-added products. In this article, based on the latest data, we will thoroughly analyze how Vietnam’s manufacturing industry, especially the “screw and fastener” market that forms its foundation, is changing amidst this complex business environment. This is must-read content for management and procurement personnel who are forced to rebuild their procurement strategies. After an adjustment phase in 2023, the Vietnamese economy is back on a strong growth trajectory in 2024. JETRO (Japan External Trade Organization) forecasts real GDP growth of 7.1% in 2024, and GDP per capita is expected to reach $4,536 (an increase of $219 from the previous year) according to IMF estimates. It is precisely the manufacturing industry that is driving this growth. According to Vietnam’s Ministry of Planning and Investment, the amount of approved FDI in the first quarter of 2024 maintained strong performance, increasing by 13.4% year-on-year. What is particularly noteworthy is that this investment is concentrated in the “manufacturing and processing industry.” FDI Concentration in Manufacturing and Processing: In the first quarter of 2024, the manufacturing and processing industry accounted for 63.6% of total FDI, reaching an amount of $3.93 billion. Main Investing Countries: Singapore was the top investor, accounting for 41.3% of the total, and Japan also invested $520.2 million. Recovery of Production Index: According to Vietnam’s General Statistics Office (GSO), the Index of Industrial Production (IIP) from January to May 2024 increased by 6.8% year-on-year, confirming that production activities are vitalizing. In the European Chamber of Commerce (EuroCham) Whitebook 2024, about 63% of respondent companies chose Vietnam as one of their top 10 FDI destinations, indicating a high level of international confidence. Despite this brilliant growth, manufacturing sites are facing serious structural challenges. Soaring Labor Costs: Vietnam’s National Wage Council has decided on a policy to raise the minimum wage by an average of ...
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March 20th, 2026
Beyond Industry Standards in Fastener Technology: Latest Innovations Driving Competitive Advantage
In Vietnam’s manufacturing industry, the most fundamental yet most critical component that underpins product quality and competitiveness is the “screw.” However, despite its importance, procurement sites still face deep-rooted challenges such as “the inability to consistently obtain products of the required quality,” “the lack of support for high-mix, low-volume production for prototypes,” and “concerns about the quality control systems of suppliers.” In an era of increasing product miniaturization and sophistication, the requirements for fastening parts can no longer be met simply by being “JIS standard compliant”. This article will detail the latest screw technologies that exceed industry standards, such as anti-loosening, lightweight and high-strength properties. It will also explain practical strategies for how to procure these in Vietnam and link them to a competitive advantage. Here, you will find concrete hints to elevate your product’s value to the next level. Why are screws, often seen merely as a cost, now being re-evaluated as “strategic components” that influence a company’s competitiveness? The background lies in the unique environment faced by Vietnam’s manufacturing industry and the increasing sophistication of demands on the products themselves. Vietnam is experiencing rapid growth as a global factory, and its manufacturing PMI has remained on an expansionary trend, exceeding 50 in many months of 2024. However, on the other hand, supply chains have become more complex, and parts procurement comes with its own unique difficulties. In particular, local suppliers that can meet the high quality standards demanded by Japanese companies are still limited, and quality variation remains a significant risk. In fact, according to a JETRO survey, approximately 45.7% of Japanese companies operating in Vietnam cite “securing the quality of employees” as a management challenge, which is directly linked to the quality control capabilities on the manufacturing floor. Furthermore, modern market needs are now mainstreaming “high-mix, low-volume” production based on just-in-time (JIT) principles, and an increasing number of suppliers based on traditional mass-production models are unable to keep up with this change. We are in an era where the existence of a partner who can stably supply custom screws in units of a few pieces with the required quality and delivery time can determine the success or failure of a business. Product evolution constantly raises the demands on fastening components. For example, the electronics field requires micro screws to secure internal circuit boards in smartphones, while the automotive sector needs special alloy bolts that combine light weight ...
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March 13th, 2026
Nanotechnology Applications in Fasteners: A Breakthrough in Manufacturing Quality
It is no exaggeration to say that quality and reliability in the manufacturing industry are determined by the performance of a single screw. Especially in production sites like Vietnam, which are central to the global supply chain and operate under demanding environments, a slight defect in fastening components can lead to critical issues such as production line stoppages and increased life cycle costs of the entire product. This article details how Ohta Vietnam (OHTA VIETNAM CO., LTD.), which combines Japanese quality standards with Vietnamese production capabilities, is fundamentally solving this problem by applying the cutting-edge technology of nanotechnology. The readers—executives, procurement and purchasing managers, and technical personnel in Japanese manufacturing companies—will gain an understanding of the innovative improvements in corrosion resistance, wear resistance, and high lubricity brought about by nano coating through this article. Furthermore, we introduce, based on specific examples and data, how this new technology contributes to stable procurement in Vietnam, advancement in quality control, and ultimately, cost optimization. Ohta Vietnam is not merely a parts supplier; it serves as a solution provider that resolves the complex challenges customers face in procurement and flexibly responds to high-mix, low-volume needs. Now, we invite you to the world of nanotechnology that overturns the conventional wisdom of screws. Nanotechnology is a technology that manipulates substances at the nanometer (10−9 meters, one-billionth of a meter) scale to create materials and components with new functions. In this ultrafine world, the chemical and physical properties of substances behave differently from the macro scale, making high performance, previously unattainable with conventional technology, possible. In the manufacturing industry, the primary application fields of nanotechnology are broadly divided into four: use of nano materials, nano coating technology, nano sensor technology, and nanoparticle dispersion technology. Especially in the field of fastening components like screws and bolts, nano coating technology, which forms a high-performance protective layer on the product surface, is key to dramatically improving quality and durability. One of the biggest factors determining the quality of fastening components is corrosion (rust). Especially in hot and humid environments like Vietnam, where they are susceptible to corrosive agents (oxygen, moisture, salt, etc.), maintaining long-term reliability with conventional plating or coating has been difficult. Nanocoating forms a nanometer-scale thin film on the surface, bringing about the following innovative effects: Formation of an extremely dense barrier layer: Compared to conventional plating, defects (pinholes) are fewer, and the effect of blocking corrosive agents ...
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March 06th, 2026
3D printing and screw manufacturing: exploring future possibilities
The manufacturing sector faces unprecedented challenges: meeting high-mix, low-volume (HMLV) demand, shortening lead times, and strengthening supply chains. In particular, the procurement of fasteners (screws, bolts, and nuts), which form the backbone of a product, often becomes a bottleneck for efficiency due to its complexity. This article details the potential of 3D printing (Additive Manufacturing, AM)—a breakthrough technology attracting significant attention—to revolutionize the future of traditional screw manufacturing. In Vietnam’s manufacturing industry, 3D printing technology is strategically positioned by the government, and its application is highly anticipated. However, in the realm of fasteners, where high precision is required, conventional cutting processes remain dominant. This report will thoroughly analyze the latest trends in 3D printing technology, particularly the benefits (design freedom, shorter prototyping) and current technical challenges (precision, cost, mass production) that metal 3D printing brings to screw manufacturing, based on specific quantitative data. We aim to provide the executives and procurement managers of Japanese manufacturers—our readers—with practical knowledge and a roadmap for integrating this innovative technology into their procurement strategies. 3D printing is growing rapidly as a core technology supporting the Digital Transformation (DX) of the manufacturing industry. The global market size for metal 3D printing was estimated at $2.478 billion in 2024 and is projected to reach $10.893 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 20.3%. The Japanese market, in particular, is expected to reach $8.2 billion by 2033, with a CAGR of 19.1% between 2025 and 2033. This growth is driven by the expanded adoption in high-value-added sectors such as aerospace, medical, and automotive. Key Data: Global 3D Printing Market Forecasts Metal 3D Printing Market Size (2024): $2.478 billion (Source: Fortune Business Insights) Metal 3D Printing Market Forecast (2032): $10.893 billion (Source: Fortune Business Insights) CAGR (2024-2032): 20.3% (Source: Fortune Business Insights) Japan Market CAGR (2025-2033): 19.1% (Source: IMARC Group) Japan 3D Printing Market Forecast (2033): $8.2 billion (Source: IMARC Group) Traditional screw manufacturing relies mainly on processes like cutting and cold forging, which require molds and dedicated tools, posing challenges in terms of initial investment and lead time. In contrast, 3D printing is increasingly being applied in the following areas: Prototyping and Jigs: It is used in the design verification stage of custom parts and special-order screws to rapidly fabricate near-net-shape components. Insert Manufacturing: There is a growing trend of inserting metal screw inserts into resin-printed objects to handle applications requiring repeated screwing ...
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February 27th, 2026
Screw technology with vibration-proofing and soundproofing effects improves the added value of products
A product’s operational noise and the vibrations it produces during use are critical factors that significantly impact the user experience. Suppressing vibration and noise is an unavoidable challenge in defining a product’s value, especially for ensuring the quiet operation of home appliances, the ride comfort of automobiles, and the stable performance of precision equipment. Standard screws are specialized for “fastening” parts, but they cannot completely suppress the micro-vibrations generated by operating machinery. This often leads to noise, loosening of parts, and ultimately, a shortened product lifespan. This article focuses on the technology of “anti-vibration and sound-damping screws,” which solves these issues and provides products with the added value of “quietness” and “high durability.” We will provide a comprehensive explanation—from their mechanisms and specific types to their implementation effects and use cases in the Vietnamese manufacturing industry—to offer practical knowledge that will contribute to your company’s product development and quality improvement. In product development, vibration and noise are not merely matters of comfort; they are business challenges directly linked to quality, safety, and brand image. Modern products, with their increasing performance and miniaturization, tend to have built-in motors and fans with higher rotation speeds. For example, it is not uncommon for a typical server cooling fan to exceed 10,000 revolutions per minute (RPM), which is a major cause of housing vibration and noise. According to the International Energy Agency (IEA), there were approximately 300 million industrial motors in operation globally as of 2022, and the vibration and noise emitted from this equipment cause problems such as the deterioration of the working environment and noise pollution in surrounding areas. In fact, a report by the World Health Organization (WHO) states that about 100 million people in Europe are exposed to traffic noise exceeding 55 decibels, and noise is recognized as an environmental factor that causes health problems. Unwanted noise from a product not only reduces customer satisfaction but also contributes to an increased failure rate of the equipment. One study suggests that vibration is responsible for about 30% of mechanical equipment failures. Regulations regarding product noise levels are becoming stricter worldwide. The European Union (EU), for example, enforces the “Outdoor Noise Directive (2000/14/EC),” which sets maximum noise levels for equipment used outdoors, covering 57 types of equipment, including lawnmowers and generators. In Japan, the “Noise Regulation Act” imposes strict standards on specific factories and construction sites. Within the international quality management standard ...
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February 20th, 2026
High-Precision Screw Technology Supporting the Evolution of High-End Products: Latest Developments and Future Outlook
From smartphones and medical equipment to the aerospace industry, the evolution of modern high-end products is supported by minuscule components invisible to our eyes: “high-precision screws.” As the demand for smaller, lighter, and higher-performance products grows daily, the level of technology required for the fasteners that hold them together has become unprecedentedly advanced and complex.We are in an era where these components must go beyond the simple function of “fastening,” demanding reliability in extreme environments, nano-level precision, and even smart functions that optimize the entire manufacturing process. This article will thoroughly explain the latest trends in high-precision screw technology, which forms the foundation of high-end products, categorized into five key trends. Furthermore, it will present concrete solutions for how to stably procure these state-of-the-art parts in Vietnam, a country of increasing importance as a global manufacturing hub, to maintain a competitive edge. The growing demand for high-precision screws is rooted in three major technological and structural challenges facing modern manufacturing. These are interconnected and make the requirements for fasteners even more stringent. Smartphones are approximately 20% thinner compared to models from a decade ago, and the internal component density of wearable devices is reaching its limits. For example, inside a smartwatch, dozens of micro screws of M1.0 (1mm in diameter) or smaller are used, and the shape of their heads must be optimized down to 0.1mm increments. Fastening in such minimal spaces presents the conflicting challenge of minimizing the screw’s own volume and weight while securing the required clamping force. This is a field that demands advanced knowledge in material mechanics, precision machining technology, and fastening theory. Inside an aircraft’s jet engine, bolts securing turbine blades are exposed to temperatures exceeding 1,000°C and centrifugal forces reaching tens of thousands of G’s. Fasteners used in the pressure hulls of deep-sea exploration vehicles must withstand pressures of about 100 MPa (megapascals) at a depth of 10,000 meters—equivalent to about 1 ton of pressure per square centimeter. Furthermore, within the vacuum chambers of semiconductor manufacturing equipment, outgassing from the screws themselves can have a fatal impact on product yields, making materials and surface treatments of extremely high cleanliness essential. In these environments, the slightest loosening or failure can lead directly to a system-wide breakdown and even catastrophic accidents involving human lives, demanding absolute reliability from fasteners. The global manufacturing supply chain has become more complex, and cross-border parts procurement is now commonplace. According ...
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February 13th, 2026
Cooperation between screws and automation equipment opens up the future of manufacturing
In manufacturing, screw fastening is a fundamental yet critical process that significantly impacts quality and productivity. Traditionally, it has heavily relied on operator skill, leading to issues like human variation and workload. Recently, the integration of “automation equipment” and “screw fastening technology” has gained attention as a new solution to address labor shortages and quality assurance demands. This article explains everything from the basics of screw fastening automation to the latest technological trends and practical applications in manufacturing sites, including in Vietnam. The intended readers are production engineers, procurement personnel, and quality control staff. Screw fastening is a foundational process common to all manufactured products. Screws are essential for securely fixing components in various industries, including electronics, automobiles, home appliances, and building materials, and their quality directly links to the reliability of the final product. However, traditional manual work has presented challenges such as variations in tightening torque due to operator skill, limitations in work efficiency, and fatigue from long hours. In recent years, the manufacturing industry has also been pressured to balance labor shortages with increased productivity. In particular, at global bases in Asia, rising labor costs have made labor-saving measures an urgent priority. Furthermore, from a quality assurance perspective, including environmental considerations and traceability, the need for automation equipment that can numerically manage and record screw fastening data is growing. Against this backdrop, screw fastening automation is attracting attention as a solution that simultaneously achieves “cost reduction,” “quality stability,” and “reduction of operator workload.” It is not just about automating manual tasks but is a fundamental technology that directly leads to the streamlining of the entire production line and the enhancement of international competitiveness. The technology for automated screw fastening equipment has evolved significantly in recent years. There are three main types of devices: “handheld,” “automatic,” and “robotic,” each with its own characteristics and implementation benefits. Handheld types automate screw feeding and torque control while being operated by a worker, balancing work efficiency with quality. Automatic types are suitable for mass production as they efficiently fasten screws to workpieces fixed in a jig. Robotic types use cameras and sensors to automatically recognize screw locations, allowing for flexible process handling. Therefore, their implementation is advancing in environments that require high-mix, low-volume production and high precision. Furthermore, the essential torque management for screw fastening has shifted from relying on human feel to numerical control by sensors. This enables precise management ...
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February 13th, 2026
Possibility of lightweight screws to save energy at manufacturing sites
In the manufacturing industry, “energy saving” has become an unavoidable and crucial challenge. With rising electricity and fuel costs, and stricter environmental regulations, every manufacturing site is seeking ways to reduce energy consumption while maintaining production efficiency. One effective approach is to lighten parts. Among these, the seemingly minor task of making the screws used throughout machinery and equipment lighter can yield significant results. This article provides a systematic explanation of how lightweight screws contribute to energy saving, from basic principles to practical applications. It is specifically aimed at design engineers, procurement managers, and quality control staff, and will introduce the benefits and key considerations for implementing lightweight screws in an easy-to-understand manner. In recent years, interest in lightweighting has increased across the entire manufacturing industry. This is driven by strong societal demands for energy conservation and environmental responsibility. For example, in the automotive industry, the tightening of fuel economy standards has made it critical to reduce vehicle weight by even one kilogram, and the lightweighting of small parts like bolts and nuts contributes significantly to improving energy efficiency. Furthermore, in the aerospace and space industries, where lightweighting is directly linked to flight performance and fuel efficiency, lightweight screws made from materials like titanium and aluminum are being actively adopted. Similarly, in the fields of robotics and medical equipment, lightweight parts contribute to improved operational efficiency and maneuverability. In addition, manufacturing in emerging economies like Vietnam faces the challenge of balancing compliance with international environmental standards and cost competitiveness. The adoption of lightweight screws can reduce material costs and improve transportation efficiency, making it an effective way for local companies to strengthen their competitiveness. Lightweight screws are fasteners that significantly reduce the weight of a joint by using materials with a lower specific gravity compared to conventional steel screws. The most common materials are aluminum, titanium, and magnesium. Aluminum, with a specific gravity of 2.7, is extremely light—about one-third that of iron (7.8)—and is widely used, particularly in the automotive and mobility sectors. Titanium is slightly heavier than aluminum but has excellent strength and corrosion resistance, making it suitable for aerospace and medical equipment. Magnesium is even lighter and has excellent workability, and is a material with great potential for future application. The effects of lightweight screws are not limited to mass reduction. Their low specific gravity directly leads to improved fuel efficiency and reduced energy consumption during equipment operation. ...