From “Build-to-Print” to “Co-Creating Products”: Vietnam Manufacturing’s Next Way Forward

In recent years, discussions around Vietnam’s manufacturing sector have often revolved around three familiar phrases: strong order inflows, rapid relocation, and a demographic dividend. But for those who have actually set up factories and run operations in Vietnam, it is clear that this opportunity is far more complex than simply “moving production from China to Vietnam.”

On the surface, production lines may have changed location. At a deeper level, however, manufacturing itself is changing lanes. The most critical turn lies in the shift from OEM to ODM: moving from passively executing drawings provided by customers to actively sitting at the table and co-developing products based on real needs.

Vietnam’s manufacturing trajectory today closely resembles the early stages of China’s manufacturing development. In the first wave of factories, machines were new, workers were young, and execution was reliable. Customers sent drawings, factories focused on their production lines, and success meant delivering on time without quality issues. In the OEM era, the rules were straightforward: whoever could offer lower costs and higher efficiency won the orders. Vietnam entered the global supply chain at precisely the right moment and secured its place in the industrial migration wave.

But over time, many factory owners began to realize a fundamental limitation: the ceiling of OEM is low. OEM rewards speed and discipline, not creativity or strategic thinking. Even when products are made efficiently and to high quality standards, pricing power and profit margins remain firmly in the hands of brand owners. Orders increase, overtime becomes routine, workshops stay lit late into the night, yet margins remain stubbornly thin. OEM manufacturing earns revenue through labor, not ideas. No matter how hard factories compete, true differentiation remains elusive.

This is why forward-looking manufacturers are now asking the same question: can we move one step further? Can we participate proactively in product development instead of passively receiving orders? This is where ODM comes into play. ODM is not simply about claiming “we also do design.” It requires a complete shift in mindset across the organization. The model moves from “you provide the drawings, we execute” to “you describe the problem, we propose the solution.”

This transformation demands more than machines and production lines. It requires engineers who understand structure, materials, and user behavior. Products no longer begin with drawings; they begin with a deep understanding of customer needs.

Why is this path unavoidable for Vietnam? Because labor cost advantages and demographic dividends will eventually peak. In a few years, as wages rise, competing solely on cost against neighboring Southeast Asian countries will lead Vietnam into the same margin pressures China faced a decade ago. To establish long-term competitiveness, Vietnam must evolve from “producing what others specify” to “creating what others need.” Executing tasks well is the baseline. Creating better solutions is the real capability.

As supply chains mature and automation becomes more accessible, craftsmanship alone is no longer enough. The real competition lies in product understanding, process integration, and development speed.

So how many Vietnamese manufacturers are truly capable of ODM today? Frankly, not many. Most factories are still at the stage of simply delivering products reliably. ODM requires several missing pieces: experienced engineering teams, integrated process know-how, structured R&D workflows, and sensitivity to market demand. These capabilities cannot be built overnight. However, the direction is clear. More customers are now willing to involve suppliers earlier, discussing concepts, prototyping together, and refining structures collaboratively. Those who can engage at this level gain far greater influence in partnerships.

At Top Performance Vietnam, our commitment to this path is rooted in experience. This is not our first industrial transition. We began in Taiwan, went through the full manufacturing upgrade cycle in mainland China, and now operate in Vietnam. What we brought with us was not just production lines, but a proven system for turning ideas into products. Whether in metal fabrication, panel processing, or injection molding with surface finishing, our focus is not on individual processes, but on building integrated systems that translate vague concepts into manufacturable, high-quality products.

Some companies come to Vietnam seeking lower costs. We came to continue transforming manufacturing into value creation.

The future of Vietnam manufacturing is not about becoming bigger, but about becoming smarter. It will evolve from production-oriented factories into product-oriented enterprises, from contract manufacturers into solution providers. OEM remains an important foundation, but companies willing to actively move toward ODM are the ones truly investing in the future.

Vietnam does not need to become “the next China.” It needs to become the first Vietnam: more open, more flexible, and more willing to think differently. On this path, those who develop their intellectual capabilities first will lead the race.

Ultimately, the evolution of manufacturing is not about doing the same work more skillfully, but about moving from passive execution to active problem-solving. Vietnam now stands at this crossroads. And for those of us who have chosen to build here, we have already stepped onto the more challenging, yet far more promising, road ahead.