Introduction

In recent years, industrial agglomeration in Vietnam has been rapidly advancing, particularly in the machinery, electronics, and automotive sectors. Japanese manufacturers are entering the local market one after another, accelerating the move to increase the local procurement ratio for parts. Among these parts, screws (fasteners such as bolts, nuts, and biscuits), while not accounting for a large percentage of production costs, are pivotal components whose quality defects can affect the reliability and safety of the entire product. This article organizes the merits, risks, and key points of procuring screws in Vietnam, and presents practical tips through success stories supported by OHTA Vietnam.

Vietnam Screw Procurement Guide (Cost Reduction & Quality Control)

Overview: The Basics of Screw Procurement in Vietnam

In Vietnam’s screw-related industry, an increasing number of manufacturers are equipped with production lines that comply with international standards such as JIS, ISO, and ASTM, thanks to foreign-led capital investment. There are two main procurement channels: ① direct purchasing from local manufacturers, and ② via Japanese or local trading companies. The former offers high price competitiveness but can be cumbersome in negotiating MOQ (Minimum Order Quantity) and delivery times. The latter has lower risks in terms of language and quality assurance and can flexibly handle high-mix, low-volume orders, but a margin is added for that service.

Looking at the cost structure, labor costs remain competitive at about one-third of China’s and about half of Thailand’s (as of 2025, from JETRO’s “Vietnam Wage Trends 2025 Edition”). Even with a strong yen and a weak dong, the potential for a 15-25% reduction in total costs, including transportation fees, is a significant advantage.

Detailed Explanation: Procurement Points & Technical Guide

• Key Points for Quality Control: For torque value management, the combined use of calibrated torque wrenches and SPC (Statistical Process Control) is effective. The mainstream materials are SUS304/SUS316 (austenitic stainless steel), but cases of using carbon steel + trivalent chromate to comply with RoHS are increasing in recent years.
• Handling High-Mix, Low-Volume Orders: For special screws for medical equipment and industrial robots, selecting a CNC integrated factory that can handle lots of 500 pieces or less can shorten the lead time by an average of 40%.
• IoT Application Example: At OHTA Vietnam, we have introduced a QR code-based inventory management system that automatically uploads manufacturing lot information to the cloud. This has reduced the time required for tracking investigations by 70% compared to conventional methods.
• Logistics Optimization: Incoterms are based on CIP (Carriage and Insurance Paid To), securing three sea line shipments per week from Haiphong Port to Kansai Port. For customs duties, applying the preferential tariff (EVFTA) under HS Code 7318 series (screws, etc.) can reduce them to 0-3%.
• Risk Management: It is important to clearly state in the contract penalty clauses for when the quality defect rate exceeds 0.2% and the prior selection of alternative suppliers in preparation for political risks.

Practical Application: Success Stories and Strengths of OHTA Vietnam

Case Study 1 | Japanese Industrial Machinery Manufacturer
Challenge: The procurement cost for 200 million general-purpose bolts annually remained high.
Measure: Changed the material from SUS to carbon steel + anti-rust coating and mass-produced at a local manufacturer.
Result: 20% reduction in total costs, and equipment maintenance costs and defect rates were also reduced to one-third.

Case Study 2 | Medical Device Manufacturer
Challenge: Wanted to procure only 5,000 special titanium screws compliant with ISO 13485 per month.
Measure: Selected a small-scale factory on the outskirts of Ho Chi Minh City equipped with CNC lathes and electropolishing facilities.
Result: Reduced MOQ to 1/10 while delivering in 3 weeks. Also passed the European CE marking examination in one go.

Case Study 3 | IoT Embedded Product Startup
Challenge: Wanted to ensure traceability during the pre-mass production prototyping stage.
Measure: Utilized OHTA Vietnam’s cloud inspection service to automatically link the fastening torque data for each lot.
Result: Achieved zero market claims and reduced audit time by 50% when transitioning to mass production.

OHTA Vietnam provides integrated support for procurement, inspection, and logistics, leveraging a network of over 30 local suppliers. Our strength lies in having Japanese engineers stationed on-site, with a system in place for initial response to defects within 24 hours.

Summary

• Vietnam offers a 15-25% cost reduction in screw procurement due to labor costs and preferential tariffs.
• The number of JIS/ISO compliant factories is increasing, allowing for flexible responses to high-mix, low-volume orders and special materials.
• The key to ensuring quality is the systematization of torque management + SPC + IoT.
• Minimize logistics and tax burdens by utilizing Incoterms CIP and the EVFTA.
• OHTA Vietnam provides one-stop support from procurement to quality assurance.

Reference Links: JETRO “Vietnam Wage Trends 2025 Edition,” ISO 898-1, JIS B 0205, etc.

Conclusion

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At Ohta Vietnam, we not only provide ready-made products such as screws and bolts, but also support activities in the manufacturing field such as cutting, inspection, assembly, packaging…
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As a “specialized support” for the manufacturing industry in Asia. If you have any related questions, feel free to contact Ohta Vietnam for detailed support!
URL: https://ohtavn.com/en/contact/

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